Spencer Stuart Board Index

2016
Spencer Stuart
Board Index
A Perspective on U.S. Boards
board index 2016 1

spencer stuart perspective for 2016
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Contents
1 Spencer Stuart Perspective for 2016
8 S&P 500 Boards: Trends over One, Five and 10 Years
10 Board Composition
10 New Independent Directors
12 Recruiting New Directors
13 Director Onboarding
14 Board Size
14 Board Independence
14 Term Length and Resignation Policies
15 Restrictions on Other Corporate Directorships
16 Term Limits
17 Average Age
18 Mandatory Retirement
18 Director Tenure
19 Female Directors
20 Minority Directors
22 CEO Succession Planning
22 CEO Outside Board Service
23 Separation of Chairman and CEO Roles
24 Independent Chairman Background
25 Lead and Presiding Directors
27 Board Organization and Process
27 Board Meetings
28 Committee Structure and Independence
29 Cybersecurity
29 Committee Meeting Frequency
30 Committee Chairman Background
31 Board Evaluations
32 Shareholder Engagement
34 Director Compensation
34 Overall Compensation Mix
35 Board Retainers
36 Board Meeting Fees
37 Equity Compensation
37 Board Leadership Compensation
38 Committee Compensation
39 Averages by Industry, Region, Sales
41 Comparative Board Data

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Spencer Stuart Perspective for 2016
Investor attention to board performance and governance continues to
escalate, and, increasingly, it’s large institutional investors — so-called
“passive” investors — who are making known their expectations in areas
such as board composition, disclosure and shareholder engagement.
Long-term investors have shifted their posture to taking positions on
good governance, and are increasingly demonstrating common ground
with activists on governance topics.
Board composition is a particular area of focus, as traditional
institutional investors have become more explicit in demanding that
boards demonstrate that they are being thoughtful about who is sitting
around the board table and that directors are contributing. They are
looking more closely at disclosures related to board refreshment, board
performance and assessment practices, in some cases establishing
voting policies on governance.
Boards are taking notice. Directors want to ensure that their boards
contribute at the highest level, aligning with shareholder interests and
expectations. In response, boards are enhancing their disclosures on
board composition and leadership, reviewing governance practices and
establishing protocols for engaging with investors. Here are some of the
trends we are seeing in the key areas of investor concern.
Board composition
The composition of the board — who the directors are, the skills and
expertise they bring, and how they interact — is critical for long-term
value creation, and an area of governance where investors increasingly
expect greater transparency. Shareholders are looking for a wellexplained
rationale for why the group of people sitting around the
board table are the right ones based on the strategic priorities of the
business. They want to know that the board has the processes in place
to review and evolve board composition in light of emerging needs,
and that the board regularly evaluates the contributions and tenure
of current board members and the relevance of their experience.
board index 2016 1

spencer stuart perspective for 2016
345
New independent directors
Acknowledging investor interest in their composition, more boards are
reviewing how to best communicate their thinking about the types of
expertise needed in the board — and how individual directors provide
that expertise. More than one-third of the 96 corporate secretaries
responding to our annual governance survey, conducted each year as
part of the research for the Spencer Stuart Board Index, said their board
has changed the way it reports director bios/qualifications; among
those that have not yet made changes, 15% expect the board to change
how they present director qualifications in the future.
What’s happening to board composition in practice after all of the
talk about increasing board turnover? In 2016, we actually saw a small
decline in the number of new independent directors elected to
S&P 500 boards. S&P 500 boards included in our index elected 345
new independent directors during the 2016 proxy year — averaging
0.72 new directors per board. Last year, S&P 500 boards added a total
of 376 new directors (0.78 new directors per board).
Nearly one-third (32%) of the new independent directors on
S&P 500 boards are serving on their first outside corporate board.
Women account for 32% of new directors, the highest rate of female
representation since we began tracking this data for the S&P 500.
This year’s class of new directors, however, includes fewer minority
directors (defined as African-American, Hispanic/Latino and Asian);
15% of the 345 new independent directors are minorities, a decrease
from 18% in 2015.
27%
Boards with an
independent chair
With the rise of shareholder activism, we’ve also seen an increase in
investors and investment managers on boards. This year, 12% of new
independent directors are investors, compared with 4% in 2011 and
6% in 2006.
Independent board leadership
Boards continue to feel pressure from some shareholders to
separate the chair and CEO roles and name an independent chairman.
And, indeed, 27% of S&P 500 boards, versus 21% in 2011, have an
independent chair. An independent chair is defined as an independent
director or a former executive who has met applicable NYSE or
NASDAQ rules for independence over time. This actually represents
a small decline from 29% last year. Meanwhile, naming a lead director
remains the most common form of independent board leadership:
87% of S&P 500 boards report having a lead or presiding director,
nearly all of whom (98%) are identified by name in the proxy.
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In our governance survey, 12% of respondents said their board has
recently separated the roles of chairman and CEO, while 33% said their
board has discussed whether to split the roles within the next five
years. Among boards that expect to or have recently separated the
chair and CEO roles, 72% cite a CEO transition as the reason, while
20% believe the chair/CEO split represents the best governance.
In response to investor interest in board leadership structure — and
sometimes demands for an independent chairman — more boards
are discussing their leadership structure in their proxies, for example,
explaining the rationale for maintaining a combined chair/CEO role
and delineating the responsibilities of the lead director. Among the
lead director responsibilities boards highlight: approving the agenda
for board meetings, calling meetings and executive sessions of
independent directors, presiding over executive sessions, providing
board feedback to the CEO following executive sessions, leading the
performance evaluation of the CEO and the board assessment, and
meeting with major shareholders or other external parties, when
necessary. Some proxies include a letter to shareholders from the lead
independent director.
4%
Boards setting an
explicit term limit for
non-executive directors
Tenure and term limits
Director tenure continues to be a hot topic for some shareholders.
While some rating agencies and investors have questioned the
independence of directors with “excessive” tenure, there are no
specific regulations or listing standards in the U.S. that speak to
director independence based on tenure. And, in fact, most companies
do not have governance rules limiting tenure; only 19 S&P 500 boards
(4%) set an explicit term limit for non-executive directors, a modest
increase from 2015 when 13 boards (3%) had director term limits.
Just 3% of survey respondents said their boards are considering
establishing director term limits, but many boards are disclosing
more in their proxies about director tenure. Specifically, boards are
describing their efforts to ensure a balance between short-tenured and
long-tenured directors. And several companies have included a short
summary of the board’s average tenure accompanied by a pie chart
breaking down the tenure of directors on the board (e.g., directors with
less than five years tenure, between five and 10 years, and more than
10 years tenure on the board).
8.3years
Average board tenure
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spencer stuart perspective for 2016
Among S&P 500 boards overall, the average board tenure is 8.3 years,
a slight decrease from 8.7 five years ago. The median tenure has
declined as well in that time, from 8.4 to 8.0. The majority of boards,
63%, have an average tenure between six and 10 years, but 19% of
boards have an average tenure of 11 or more years.
19%
We also looked this year at the tenure of individual directors: 35% of
independent directors have served on their boards for five years or
less, 28% have served for six to 10 years, and 22% for 11 to 15 years.
Fifteen percent of independent directors have served on their boards
for 16 years or more.
Boards with an average
tenure of 11 or more years
Mandatory retirement
In the absence of term or tenure limits, most S&P 500 boards
rely on mandatory retirement ages to promote turnover. About
three-quarters (73%) of S&P 500 boards report having a mandatory
retirement age for directors. Eleven percent report that they do not
have a mandatory retirement age, and 16% do not discuss mandatory
retirement in their proxies.
Retirement ages have crept up in recent years, as boards have raised
them to allow experienced directors to serve longer. Thirty-nine percent
of boards have mandatory retirement ages of 75 or older, compared
with 20% in 2011 and just 9% in 2006. Four boards have a retirement
age of 80. The most common mandatory retirement age is 72, set by
45% of S&P 500 boards.
39%
Boards with a
mandatory retirement
age of 75 or higher
As retirement ages have increased, so has the average age of
independent directors. The average age of S&P 500 independent
directors is 63 today, two years older than a decade ago. In that same
period, the median age rose from 61 to 64. Meanwhile, the number of
older boards has increased; 37% of S&P 500 boards have an average
age of 64 or older, compared with 19% a decade ago, and 15 of today’s
boards (3%) have an average age of 70 or greater, versus four (1%) a
decade ago.
Board evaluations
Another topic on which large institutional investors have become more
vocal is board performance evaluations. Shareholders are seeking
greater transparency about how boards address their own performance
and the suitability of individual directors — and whether they are using
assessments as a catalyst for refreshing the board as new needs arise.
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We have seen a growing trend in support of individual director
assessments as part of the board effectiveness assessment — not
to grade directors, but to provide constructive feedback that can
improve performance. Yet the pace of adoption of individual director
assessments has been measured. Today, roughly one-third (32%) of
S&P 500 boards evaluate the full board, committees and individual
directors annually, an increase from 29% in 2011.
In our survey of corporate secretaries, respondents said evaluations
are most often conducted by a director, typically the chairman, lead
director or a committee chair. A wide range of internal and external
parties are also tapped to conduct board assessments, including inhouse
and external legal counsel, the corporate secretary and board
consulting firms. Thirty-five percent use director self-assessments, and
15% include peer reviews. According to proxies, a small number of
boards, but more than in the past, disclose that they used an outside
consultant to facilitate all or a portion of the evaluation process.
63
Average age of
independent directors
Shareholder engagement
In light of investors’ growing desire for direct engagement with
directors, more boards have established frameworks for shareholders
to raise questions and engage in meaningful, two-way discussions
with the board. In addition to improving disclosures about board
composition, assessment and other key governance areas, some
boards include in their proxies a summary of their shareholder
outreach efforts. For example, they detail the number of investors
the board met with, the issues discussed and how the company and
board responded. A few boards facilitate direct access to the board
by providing contact information for individual directors, including
the lead director and audit committee chair.
Going further, many boards now proactively reach out to their
company’s largest shareholders. In our survey, 83% of respondents
said management or the board contacted the company’s large
institutional investors or largest shareholders, an increase from
70% the year prior. The most common topic about which companies
engaged with shareholders was proxy access (52%), an increase
from 33% in 2015. Other topics included “say on pay” (51%), CEO
compensation (40%), director tenure (30%), board refreshment (27%),
shareholder engagement approach (27%) and chairman independence
(24%). Survey respondents also wrote in more than a dozen additional
topics, including majority/cumulative voting, disclosure enhancements,
environmental issues and gender pay equity.
32%
Boards that evaluate the
full board, committees and
individual directors annually
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spencer stuart perspective for 2016
Enhancing board performance
The topic of board refreshment can be a highly charged one for boards. But having the right skills
around the table is critical for the board’s ability to provide the appropriate guidance and oversight of
management. Furthermore, the capabilities and perspectives that a board needs evolve over time as the
business context changes. Boards can ensure that they have the right perspectives around the table and
are well-equipped to address the issues that drive shareholder value — which, after all, is what investors
are looking for — by doing the following:
»»
Viewing director recruitment in terms of ongoing board
succession planning, not one-off replacements.
Boards should periodically review the skills and expertise
on the board to identify gaps in skills or expertise based
on changes in strategy or the business context.
»»
Proactively communicating the skill sets and expertise in
the boardroom — and the roadmap for future succession.
Publishing the board’s skill matrix and sharing the
board’s thinking about the types of expertise that are
needed on the board — and how individual directors
provide that expertise — signals to investors that the
board is thoughtful about board succession.
»»
Setting expectations for appropriate tenure both at the
aggregate and individual levels.
By setting term expectations when new directors join,
boards can combat the perceived stigma attached to
leaving a board before the mandatory retirement age.
Ideally, boards will create an environment where directors
are willing to acknowledge when the board would benefit
from bringing on different expertise.
»»
Thinking like an activist and identifying vulnerabilities
in board renewal and performance.
Proactive boards conduct board evaluations annually
to identify weaknesses in expertise or performance.
They periodically engage third parties to manage the
process and are disciplined about identifying and
holding themselves accountable for action items
stemming from the assessment.
»»
Establishing a framework for engaging with investors.
This starts with proactive and useful disclosure, which
demonstrates that the board has thought about its
composition, performance and other specific issues.
In addition, it is valuable to have a protocol in
place enumerating responsibilities related to
shareholder engagement.
Furthermore, the
capabilities and
perspectives that
a board needs
evolve over time
as the business
context changes.
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OTHER HIGHLIGHTS FROM THIS YEAR’S INDEX
»
» Only 19% of new independent directors are active CEOs, chairs, presidents and chief
operating officers, compared with 24% in 2011, 29% in 2006 and 49% in 1998, the first
year we looked at this data for S&P 500 companies.
»»
Active executives with financial backgrounds (CFOs, other financial executives, as well
as investors and bankers) represent 15% of new independent directors this year, an
increase from 12% last year. Another 10% of new directors are retired finance and public
accounting executives.
»»
On average, S&P 500 directors have 2.1 outside corporate board affiliations, although most
directors aren’t restricted from serving on more.
»»
The number of boards with no female directors dropped to the lowest level we have seen; six
S&P 500 boards (1%) have no women, a noteworthy decline from 2006, when 52 boards
(11%) included no female members. Women now constitute 21% of all S&P 500 directors.
»»
Among the boards of the 200 largest S&P companies, the total number of minority directors
has held steady at 15% since 2011. 88% of the top 200 companies have at least one minority
director, the same as 10 years ago.
»»
Only 43% of S&P 500 CEOs serve on one or more outside corporate boards in addition
to their own board, the same as in 2015. In 2006, 55% of CEOs served on at least one
outside board.
»»
Boards met an average of 8.4 times for regularly scheduled and special meetings, up from
8.1 last year and 8.2 five years ago. The median number of meetings rose from 7.0 last year
to 8.0.
»»
The average annual total compensation for S&P 500 directors, excluding the chairman's
compensation, is $280,389.
»»
Over time, the compensation mix for directors has evolved, with more stock grants and fewer
stock options. Today, stock grants represent 54% of total director compensation, versus 48%
five years ago, while stock options represent 6% of compensation today, down from 10% five
years ago. Cash accounts for 38% of director compensation, versus 39% in 2011.
»»
95% of the independent chairmen of S&P 500 boards receive an additional fee, averaging
$165,112. Nearly two-thirds of lead and presiding directors, 65%, receive additional
compensation. The average premium paid to lead and presiding directors is $33,354.
Editor’s Note
The Spencer Stuart Board Index (SSBI) is based on our analysis of the most recent proxy reports from the S&P 500, plus an extensive supplemental
survey. This edition of the SSBI draws on the latest proxy statements from 482 companies filed between May 15, 2015, and May 15, 2016, and
responses from 96 companies to our governance survey conducted in the second quarter of 2016. Survey respondents are typically corporate
secretaries, general counsel or chief governance officers. Proxy and survey data have been supplemented with information compiled in Spencer
Stuart’s proprietary database.
board index 2016 7

S&P 500 Boards: Trends over One, Five and 10 Years
Board composition
2016 (a) 2015 (b) 2011 (c) 2006 (d) % change
5-year
Average board size 10.8 10.8 10.7 10.7 1% 1%
Independent directors 85% 84% 84% 81% 1% 5%
Average age of
independent directors
New independent directors
63.0 63.1 62.4 61.0 1% 3%
Total number 345 376 294 391 17% -12%
Women 32% 31% 21% 23% 52% 39%
Active CEO/chair/president/
COO/vice chair
Retired CEO/chair/president/
COO/vice chair
19% 20% 24% 29% -21% -34%
19% 18% 19% 11% 0% 73%
Financial backgrounds 25% 24% 18% 24% 39% 4%
Other corporate executives 23% 25% 21% 15% 10% 53%
10-year
% change Comments
Board size remains constant over the
past decade
The representation of independent directors
has increased by 5% in the last decade
Independent directors are two years older
on average than 10 years ago
17% more new independent directors than
five years ago
Nearly one-third of new directors
are women
Sitting CEOs and other top executives
are steadily decreasing as a source of
new directors
Boards continue to tap retired
senior executives
Demand for directors with financial
expertise grows
Other C-level executives have become an
important source of new directors
Women directors
Women as a % of all directors 21% 20% 16% 15% 33% 42% Female representation continues to grow
Boards with at least one
woman director
99% 97% 91% 89% 8% 10% Still 6 boards have no female directors
CEO profile
% of CEOs serving on an
outside board
43% 43% 46% 55% -7% -22%
Women CEOs 24 22 15 12 60% 100%
Boards where CEO is the
only non-independent
60% 61% 57% 39% 5% 54%
Average age 57.2 57.0 56.5 55.2 1% 4%
Average tenure with company 19.4 18.8 16.4 14.4 18% 35%
Board leadership
CEO is also chairman 52% 52% 59% 67% -12% -22%
Independent chairman 27% 29% 21% 10% 29% 170%
Boards with lead or
presiding director
Board meetings
Average number of
board meetings
Median number of
board meetings
87% 89% 92% 96% -7% -10%
8.4 8.1 8.2 8.4 2% 0%
8 7 8 8 0% 0%
CEOs continue to reduce their outside
board commitments
The number of female CEOs has
doubled, but women still lead just 6%
of S&P 500 companies
50% decline in boards with more than one
executive member in the past decade
The average age of CEOs has increased
gradually over the past 10 years
Average CEO company tenure is 3 years
longer than 5 years ago
Nearly half of boards separate the chair
and CEO roles
The percentage of boards with an
independent chair has almost tripled in a
decade, despite small decline from last year
Fewest lead directors in past decade, but
more independent chairs
Board meeting frequency returns to
2006 level
Median consistent with 5- and
10-year levels
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Retirement age
Boards with mandatory
retirement age
Boards with mandatory
retirement age of 75+
Boards with mandatory
retirement age of 72+
Committee meetings
Average number of audit
committee meetings
Average number of compensation
committee meetings
Audit committee chairmen
Active CEO/chair/president/
vice chair
Financial exec/CFO/treas/
public acct exec
Non-employee director compensation
(a)
Data based on proxy year May 15, 2015, through May 15, 2016.
(b)
Data based on proxy year May 20, 2014, through May 15, 2015.
(c)
Data based on proxy year May 15, 2010, through May 15, 2011.
(d)
Data based on proxy year May 15, 2005, through May 15, 2006.
(e)
Based on non-employee director compensation tables included in 477 and 493 proxies for 2016 and 2011, respectively.
(f)
Not including stock beyond retainer
2016 (a) 2015 (b) 2011 (c) 2006 (d) % change
5-year
73% 73% 73% 78% 0% -6%
10-year
% change Comments
Boards with a mandatory retirement age
remain unchanged from 2011
39% 34% 20% 9% 95% 333% Director retirement ages continue to rise
95% 94% 83% 61% 14% 56%
8.6 8.8 8.7 9.5 -1% -9%
6.1 6.1 6.6 6.0 -8% 2%
6% 7% 11% 19% -45% -68%
39% 40% 32% 23% 22% 70%
Total average compensation (e) $285,065 $277,237 $232,142 n/a 23% n/a
Average annual retainer (f) $118,521 $112,144 $88,858 $63,594 33% 86%
Median annual retainer (f) $100,000 $90,000 $75,000 $50,000 33% 100%
Boards paying retainer of at
least $100,000
Boards paying board
meeting fee
50% 77% 29% 15% 72% 233%
16% 21% 37% 57% -57% -72%
Nearly all S&P 500 boards with a
retirement age set it at 72 or higher
Audit committees do not meet as often
as they did a decade ago
Compensation committee meeting frequency
returning to average from 10 years ago
Fewer active executives serve as
audit committee chair as time
commitment increases
Boards more likely to tap financial
executives to chair audit committee
23% increase in total director
compensation in five years
Average retainer grew by more than
85% in 10 years
Median retainer has doubled in the
past decade
72% increase in boards paying a retainer
of $100,000 or more in 5 years
The number of boards paying meeting
fees has fallen below 20%
Average board meeting fee $2,155 $2,041 $2,284 $1,955 -6% 10% Average meeting fee is also on the decline
Boards offering stock
option program
Boards paying equity in
addition to retainer
Committee compensation
Boards paying committee
chair retainer
Average committee
chair retainer
Boards paying committee
member retainer
Average committee
member retainer
Boards paying committee
meeting fees
Average committee
meeting fees
14% 16% 28% 51% -50% -73%
76% 77% 77% 64% -1% 19%
95% 95% 91% 84% 4% 13%
$15,370 $14,399 $12,476 $9,106 23% 69%
41% 41% 37% 29% 11% 41%
$8,947 $8,926 $7,917 $6,431 13% 39%
21% 26% 35% 59% -40% -64%
$1,677 $1,678 $1,635 $1,499 3% 12%
Most boards have dropped stock options
as a component of director compensation
Three-quarters of boards provide equity in
addition to a cash
Nearly all boards provide a retainer
to committee chairs
Committee chair retainers continue
to rise
Retainers for committee service more
common in lieu of meeting fees
Committee member retainers also
on the rise
About 20% of boards compensate for
committee meeting attendance
The average meeting fee has
increased modestly
board index 2016 9

Board Composition
Board Composition
2016 Snapshot
345new independent
directors
92
27 %
of boards have an
independent chairman
of boards
% have annual
director elections
23 %
32 %
of new directors
are female
an all-time high
32 %
of new directors are
serving for the first time
of new directors are one or two
levels down from the CEO role
Slight decline in new director recruiting
»
» S&P 500 boards included in our index elected 345 new independent directors during the 2016 proxy year
— averaging 0.72 new directors per board. Last year, S&P 500 boards added a total of 376 new directors
(0.78 new directors per board).
»»
Among the 482 boards in our study, 48% added at least one new director. The 345 new directors joined
233 boards, with 87 boards welcoming more than one director.
»»
The number of new independent directors decreased 8% from last year. This is still the third most since
2008, when S&P 500 boards added 380 new directors.
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Fewer actively employed executives joining outside boards than
in the past
»»
More than half (53%) of new independent directors are active senior executives and professionals. Over
the past decade, we have seen a decline in the number of actively employed executives taking on outside
board appointments; active executives made up 59% of new directors in 2011 and 66% a decade ago.
»»
Only 19% of new independent directors are active CEOs, chairs, presidents and chief operating officers,
compared with 24% in 2011, 29% in 2006 and 49% in 1998, the first year we looked at this data for
S&P 500 companies.
»»
With fewer active CEOs taking new outside board roles, we have seen a rise in the representation of
active corporate executives a level or two below the CEO among new independent directors. Corporate
executives such as division and subsidiary presidents and line and functional leaders now make up 23%
of new independent directors, compared with 21% in 2011.
»»
Active executives with financial backgrounds (CFOs and other financial executives, as well as investors
and bankers) represent 15% of new independent directors this year, an increase from 12% last year.
Another 10% of new directors are retired finance and public accounting executives.
»»
Among the 36 new independent directors classified as line and functional leaders, 16% are
technology executives.
One-third of new directors are serving on their first outside
corporate board
»»
Nearly one-third of new independent directors (32%) are serving on their first outside board. This
represents an increase from 26% last year, but a decrease from 2014 when 39% of new directors were
first-time board members, the largest influx of first-time directors we have seen since we began tracking
this data in 2006.
»»
First-time directors are more likely to be actively employed than new directors with previous board
experience: 68% of first-timers are active executives compared with 27% of experienced directors.
»»
Current or retired CEOs are more likely to have outside public company board experience, defined as
membership on a board other than their employer’s board. Only 24% of new directors who are current
or former CEOs are serving on an outside board for the first time.
Nearly one-third of new directors are women
»
» Female representation among new directors rose to 32% in 2016, from 31% in 2015 and 21% in 2011. This is
the highest rate of female representation since 1998 when we began tracking this data for the S&P 500.
»»
New female independent directors are more likely than their male counterparts to be line and functional
leaders; 20% of women are in line or functional roles, compared with 6% of male directors. Another
18% of female directors are division or subsidiary presidents, versus 10% of male directors. By contrast,
male directors are significantly more likely than female directors to be active or retired CEOs and other
top leaders: 47% versus 18%.
»»
28% of new directors have global professional experience — defined in this report as having worked at
an international location — compared with 35% in 2015. New directors have working experience in
diverse global locations, including Africa, Asia, Europe and Latin America.
board index 2016 11

Board Composition
aDDED PERSPECTIVE
Spencer Stuart Governance Survey: Board renewal
69% of survey respondents said their board has a strategy to encourage regular board succession,
unchanged from last year. This represents a significant increase over 41% in 2014, however, reflecting
the increasing attention to composition and board succession planning.
Respondents cited three main drivers of their refreshment strategies: director retirements (91%), the
desire to add new skills (79%) and the goal to increase the diversity of the board (62%).
When asked how many new directors their board intends to recruit in the current year, 37% of respondents
said their board intends to recruit one new director, 13% intend to recruit two new directors, and
2% intend to recruit three or more directors. 36% expect their boards will recruit one or more directors
in 2017. Director retirements are the main driver of board recruitment, cited by 79% of respondents.
Adding new skills (70%) and increasing the diversity of the board (47%) were the two other primary
reasons for adding directors.
In light of the growing interest in board composition by shareholders, this year’s survey asked whether
boards have made changes to the way directors’ qualifications are presented in the proxy. 34% of
respondents said their boards had changed the way they reported director bios/qualifications; among
those that have not made changes, 15% expect the board to make changes to the presentation of
director backgrounds in the future.
Director recruiting profiles
Boards are prioritizing women when recruiting new
directors, the survey found: 64% of respondents said
their boards are looking to bring a woman on board, a
10% increase from last year.
Other recruiting priorities are active and retired
CEOs/COOs, at 63% and 58% of respondents,
respectively. More than half of respondents indicated
that minority directors and those with financial expertise
and global perspective were recruiting priorities.
37% of respondents said their boards are prioritizing
specific industry expertise, compared with 27% last year.
Interest in recruiting directors with technology, digital
and marketing expertise is on the rise, the survey found.
In the 2016 survey, 44% said technology expertise was
on their board’s wish list, versus 41% last year. We also
saw an increase in demand for digital and social media
expertise (21% versus 16%) and marketing expertise
(19% versus 14%). Demand for cybersecurity experts
fell slightly to 19% from 20% last year.
Wish list for new director backgrounds *
Women 64%
Active CEO/COO 63%
Retired CEO/COO 58%
Minority 55%
Financial expertise 55%
Global perspective 55%
Technology expertise 44%
Specific industry expertise 37%
Digital/social media expertise 21%
Regulatory/government experience 19%
Marketing expertise 19%
Cybersecurity expertise 19%
Other 7.7%
N = 96 survey respondents
*
Percentages add up to more than 100 as respondents
could select more than one category.
Data in this and other sections labeled “Added Perspective” come from our governance survey, conducted in the second quarter of 2016.
This year, we heard from 96 S&P 500 companies. Respondents include corporate secretaries, general counsel and chief governance officers.
12
spencer stuart

New directors represent diverse industry and
functional backgrounds
»
» Demand for financial backgrounds has been rising modestly in recent years; as noted below, 25% of new
directors are active or retired executives with banking, finance, investment or accounting credentials,
compared with 24% last year, 20% in 2014 and 18% in 2013. Specifically, we are seeing an increase in
directors coming from investing and investment management, together accounting for 12% of new
directors, up from 9% last year.
»»
The top three industry backgrounds for new independent directors are tech/telecommunications,
consumer goods and services, and private equity/investments, representing 15%, 13% and 12% of new
director backgrounds, respectively.
New Independent Director Backgrounds * Year 2016
2006 2011 2016 Men Women
CEO/chair/president/ COO/vice chair 40% 43% 38% 47% 18%
Active 29% 24% 19% 24% 9%
Retired 11% 19% 19% 23% 9%
Other corporate executives 15% 21% 23% 16% 38%
Division/subsidiary presidents 5% 13% 13% 10% 18%
Line and functional leaders 10% 8% 10% 6% 20%
Financial backgrounds 24% 18% 25% 28% 19%
Financial executives/CFO/treasurers 11% 9% 9% 9% 7%
Bankers/investment bankers 4% 3% 2% 3% 2%
Investment managers/investors 6% 4% 12% 14% 7%
Public accounting executives ** 3% 2% 2% 2% 3%
Academics/nonprofit 8% 7% 4% 3% 6%
Consultants 5% 4% 3% 1% 6%
Lawyers 2% 1% 1% 2% 0%
Others *** 6% 6% 6% 3% 13%
N = 236 men and 109 women in 2016
*
Except where noted, all include both active and retired executives.
**
All former partners or executives of public accounting firms.
***
Includes former government employees, medical executives, a real estate broker, a sports/entertainment agent and an author, among others.
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Director onboarding
»»
90% of respondents said new directors meet with the company’s outside auditor as part of the
director orientation program, and 50% have new directors meet with the company’s
compensation adviser. 8% said new directors meet with outside legal counsel.
» » 68% of respondents said new directors get to know the company through site visits, while 20%
said new directors participate in third-party development/education. 18% require new board
members to attend meetings of all the committees during their first year.
board index 2016 13

Board Composition
Average board size hovers near 11
»
» For more than 10 years, the average size of S&P 500 boards has fallen within a consistent range between
10.7 and 10.9 members. S&P 500 boards have 10.8 members on average today, the same as last year.
»»
Boards range in size from five to 19 members. Over the past decade, more boards have settled into the
nine to 12 member range; 72% of boards have nine to 12 members today, compared with 66% in 2006.
Larger and smaller boards are less common; 12% of boards have eight or fewer directors, compared
with 15% in 2006; and 16% of boards have 13 or more members, versus 19% in 2006.
»»
BlackRock tops the list of largest boards with 19 members, followed by BB&T with 18 members and
Chubb with 17.
»»
As of their latest proxy filings, the smallest boards — D.R. Horton, Garmin and Microchip Technology
— have five directors, and two boards have six members.
Board Size
72% 69% 66%
12% 14% 15% 16%
17% 19%
2016
2011
2006
8 or fewer directors
9 to 12
13 or more
Independent director representation stabilizes near 85%
»
» Independent directors make up 85% of all S&P 500 board members, up slightly from 84% last year. The ratio
of independent directors to non-independent directors on S&P 500 boards is 5.4 to 1, with boards averaging
9.1 independent directors and 1.7 non-independent directors. In 2006, 81% of directors were independent.
»»
As boards have become more independent over time, the CEO has emerged as the only
non-independent director on most boards; the CEO is the only non-independent director on
60% of S&P 500 boards, compared with 57% in 2011 and 39% in 2006.
Annual director elections are now standard
»
» 92% of S&P 500 boards are declassified, unchanged from last year. The remaining boards have
three-year terms.
»»
The move toward declassified boards has accelerated in recent years, often in response to shareholder
demands; 56% of boards in 2006 and 76% in 2011 had annual director elections.
»»
We also have seen an increase in boards establishing policies requiring directors to offer their
resignation if they fail to receive a majority vote from shareholders; 88% of boards have such policies
today, up from 79% in 2011. While these policies have become widespread, boards retain the discretion
to accept or decline a director’s resignation.
14
spencer stuart

Most boards have resignation policies for changing
director status
»
» Consistent with the past several years, 85% of S&P 500 boards require directors who experience a
change in employment status or significant change in job responsibilities to notify the chairman and/or
the nominating committee and offer their resignation from the board. Typically, the chair or nominating
committee has the discretion to accept or decline the resignation.
»»
37% of boards report having a policy requiring the CEO to submit his or her resignation from the board
when the CEO’s employment with the company ends. In all cases, however, boards retain the discretion
to accept or decline the resignation. This provision is somewhat more common than in 2011, when 32%
of boards had such a policy.
Majority of directors face restrictions on additional
board service
»
» Nearly three-quarters of S&P 500 boards (74%) have established some limit on their directors’ ability to
accept other corporate directorships, an increase from 27% in 2006. The prevalence of these restrictions
has grown in response to concerns about directors becoming “overboarded,” with insufficient time to
devote to board responsibilities.
»»
61% of boards set a numerical limit for other board service applying to all directors; of those, 5% cap
additional directorships at two, 36% at three, 40% at four, and 19% at five or six. No company limits
other directorships to one.
»»
40% of S&P 500 boards restrict the number of other audit committees on which their members may serve;
97% of these boards allow audit committee members to serve on up to two other audit committees.
»»
20% of boards set restrictions for directors who are public company CEOs or are otherwise fully
employed; most often, these directors are limited to two other outside public company boards. No
board allows directors who are employed executives to serve on more than three additional boards.
»»
Among the 125 boards that do not specify a limit on other corporate directorships, 90% report that they
require directors to notify the chairman prior to accepting an invitation to join another company board
and/or encourage directors to “reasonably limit” their other board service.
»»
Most companies do not restrict their CEOs from serving on outside boards. Only 20% of S&P 500
boards set a specific limit in their corporate governance guidelines on the CEO’s outside board service;
97% of those boards limit CEOs to one or two outside boards. One board does not allow the company
CEO to serve on any outside corporate boards.
board index 2016 15

Board Composition
The average director serves on two corporate boards
»
» On average, S&P 500 directors have 2.1 outside corporate board affiliations, although most directors
aren’t restricted from serving on more. While the average has remained unchanged for the past five
years, we’ve seen a decline in the number of directors serving on more than four boards; 88 directors
(2%) today serve on five or six outside corporate boards, versus 165 (4%) in 2011.
»»
63% of independent directors have two or more outside affiliations; 11% have four or more. 15 directors
(less than 1%) serve on six boards.
Number of Corporate Board Affiliations for Independent Directors
37% 30% 22% 11%
1 board 2 boards 3 boards 4+ boards
Director term limits rarely used as a tool to promote turnover
»»
19 S&P 500 boards (4%) set an explicit term limit for non-executive directors, a modest increase from
2015 when 13 boards (3%) had director term limits. The use of term limits has been consistently low; the
number of boards with term limits today is exactly the same as in 2011, 19 (4%). 65% of boards explicitly
state in their corporate governance guidelines that they do not have term limits, and 31% do not
mention term limits at all.
»»
Of the 19 boards with a specific term limit, nine cap director service at 15 years, four at 12 years, three at
10 years, one at 18 years, and two at 20 years. The longest term limit is 20 years, and no board has a
term limit less than 10 years.
»»
Rather than set term limits or a mandatory retirement age, many boards report that they consider
whether individual directors should be re-nominated during the evaluation process.
Boards with Term Limits
Company Term limits Company Term limits
Patterson Companies 20 years Varian Medical Systems 15 years
Target Corporation 20 years Xcel Energy 15 years
The Procter & Gamble Company 18 years AvalonBay Communities 12 years
Alaska Air Group 15 years CBRE Group 12 years
Frontier Communications Corporation 15 years International Flavors & Fragrances 12 years
General Electric Company 15 years Wal-Mart Stores 12 years
MasterCard 15 years Allegion Public Limited Company 10 years
Qorvo 15 years Illumina 10 years
Signet Jewelers Limited 15 years Juniper Networks 10 years
The Walt Disney Company
15 years
16
spencer stuart

ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Director term limits
»»
Scrutiny of board tenures has increased in recent years, but boards have not taken the step to
establish director term limits as a means of limiting tenure. Only 4% of survey respondents said
their boards have term limits today, and just 3% reported their boards are considering this step.
»»
6% of respondents report their board is considering other means of ensuring director turnover, such
as a mandatory retirement age, annual evaluations and a robust self-assessment process.
Independent directors are two years older than a decade ago
»
» The average age of S&P 500 independent directors increased by two years in the past decade, from 61 in
2006 to 63 today, while the median age increased from 61 to 64. 19% of S&P 500 independent directors
are 70 to 79, and 4% are younger than 50.
»»
Fewer boards than in the past have an average age of 59 or younger: 15% today compared with 28% a
decade ago. By contrast, the number of older boards has increased. 37% of S&P 500 boards have an
average age of 64 or older, compared with 19% of boards a decade ago, and 15 of today’s boards (3%)
have an average age of 70 or greater, versus four (1%) a decade ago.
»»
Among new independent directors, the average age increased since last year. The new independent
director class of 2016 has an average age of 57.3, compared with 56.8 in 2015. The median age increased
from 57 to 58. The oldest new director elected in the 2015 proxy year is 77, and the youngest is 35. Eight
boards added a new independent director aged 70 or older.
Ages of Independent Directors
2016 2011 2006
Average age of all independent directors 63.0 62.4 61.0
Youngest average board age 47 50 49
Oldest average board age 76 72 75
% of all S&P 500 boards with average age …
59 and younger 15% 17% 28%
60-63 48% 46% 53%
64 and older 37% 37% 19%
board index 2016 17

Board Composition
Mandatory retirement ages keep rising
»
» Consistent with the past 10 years, about three-quarters (73%) of S&P 500 boards report having a
mandatory retirement age for directors. 11% report that they do not have a mandatory retirement age,
and 16% do not discuss mandatory retirement in their proxies.
»»
While the number of boards with mandatory retirement ages has remained consistent, retirement ages
have continued to increase. 39% of boards have retirement ages of 75 or higher, compared with just 9%
in 2006. Four boards have a retirement age of 80. In 2006, 38% set their retirement age at 70, or lower;
today just 5% of boards have a retirement age of 70, and no board has set it lower than that.
»»
The most common mandatory retirement age is 72, set by 45% of S&P 500 boards, a decrease from 50%
last year.
Mandatory Retirement Age
2016 2011 2006
70 and younger 5% 16% 38%
71 1% 1% 1%
72 45% 55% 48%
73 4% 5% 3%
74 6% 3% 1%
75 and older 39% 20% 9%
N = Boards that have set a mandatory retirement age: 352 for 2016, 362 for 2011, 376 for 2006.
Small decline in average board tenure
»
» The average tenure of S&P 500 boards is 8.3 years, a slight decrease from 8.7 five years ago. The median
tenure has declined as well in that time, from 8.4 to 8.0.
»»
The majority of boards, 63%, have an average tenure between six and 10 years.
»»
19% of boards have an average tenure of 11 or more years, compared with 21% in 2015 and 19% in 2011.
18% have an average tenure of five years or less, up from 17% last year.
»»
The longest average board tenure is 21 years, and the longest-tenured director has served 48 years.
»»
35% of independent directors have served on their boards for five years or less, 28% have served for
six to 10 years, and 22% for 11 to 15 years. 15% of independent directors have served on their boards for
16 years or more.
»»
With the average tenure for sitting CEOs at 7.2 years, most boards will serve with two CEOs.
Board Average Tenure
18% 63% 18% 1%
5 years
or less
6 to 10
years
11 to 15
years
16 years
or more
18
spencer stuart

Female representation on boards now tops 20%
»
» Women now constitute 21% of all S&P 500 directors. Female representation has increased from 15% a
decade ago. On average, boards have 2.3 female directors, compared with 1.6 in 2006.
»»
Six S&P 500 boards (1%) have no women directors, a noteworthy decline from 2006, when 52 boards
(11%) included no female members. More than three-quarters of boards (76%) include two or more
women, a significant increase from 51% a decade ago and 58% five years ago. One-quarter of boards
have three women directors, compared with just 12% of boards in 2011.
»»
24 S&P 500 companies (4.8%) had a woman serving as CEO as of our May 15, 2016, proxy cut-off date, an
increase from 3.0% five years ago. Since then, one female CEO (Lauralee E. Martin) stepped down in 2016 and
three announced plans to retire or step down in 2017 (Susan M. Cameron, Gracia C. Martore and Ursula Burns);
and five women were named CEOs: Shira Goodman at Staples, Debra Crew at Reynolds American, Tricia Griffith
at Progressive Corporation, Vicki Hollub at Occidental Petroleum and Pat Kampling at Alliant Energy.
»»
Companies led by women tend to have more female board directors than those led by men: 31% of directors
on boards of companies with a female CEO are women, versus 21% for companies with a male CEO. When
the female CEO is excluded, however, the gap narrows: 24% of the remaining directors are women.
S&P 500 Female CEOs and Their Boards *
Company CEO Total directors Women directors Women directors as %
of total
American Water Works Susan N. Story 9 5 56%
TEGNA Gracia C. Martore 10 5 50%
ULTA Salon, Cosmetics & Fragrance Mary N. Dillon 11 5 45%
General Motors Company Mary T. Barra 12 5 42%
Xerox Corporation Ursula M. Burns 8 3 38%
Hewlett-Packard Company Margaret C. Whitman 14 5 36%
KeyCorp Elizabeth E. Mooney 14 5 36%
Campbell Soup Company Denise M. Morrison 12 4 33%
CMS Energy Corporation Patricia K. Poppe 12 4 33%
Synchrony Financial Margaret M. Keane 9 3 33%
Mondelez International Irene B. Rosenfeld 13 4 31%
Mylan Heather Bresch 13 4 31%
Yahoo! Marissa Mayer 13 4 31%
General Dynamics Corporation Phebe N. Novakovic 10 3 30%
PepsiCo Indra K. Nooyi 14 4 29%
Lockheed Martin Corporation Marillyn A. Hewson 11 3 27%
Sempra Energy Debra L. Reed 11 3 27%
Duke Energy Corporation Lynn J. Good 12 3 25%
HCP Lauralee E. Martin 8 2 25%
Ventas Debra A. Cafaro 9 2 22%
International Business Machines Corporation Virginia M. Rometty 14 3 21%
Ross Stores Barbara Rentler 11 2 18%
Oracle Corporation Safra A. Catz 12 2 17%
Reynolds American Susan M. Cameron 13 2 15%
Average % women directors for companies with female CEOs 31% **
Average % women directors for companies with male CEOs 21%
*
Accurate as of each company’s most recent proxy released by May 15, 2016.
**
Excluding the CEO, the average is 24%.
board index 2016 19

Board Composition
Boards*
nic/Latino
Fewer minorities join boards; no change in minority
representation overall
»
» Fewer minority directors (defined as African-American, Hispanic/Latino and Asian) were appointed to
S&P 500 boards over the past year than the prior year. 15% of the 345 new independent directors are
minorities, a decrease from 18% in 2015. Minority directors filled 53 vacant board seats. 8% of new
directors are African-American, 5% are Hispanic/Latino, and 2% are of Asian descent.
»»
New minority directors are more likely than non-minority directors to be line and functional leaders or
division/subsidiary presidents, 41% versus 20%, and less likely to be active or retired senior leaders
(such as CEO, chair, president or COO), 24% versus 41%.
»»
Among the boards of the top 200 S&P 500 companies, the total number of minority directors has held
steady at 15% since 2011, and the number of the top 200 companies with at least one minority director
remains unchanged at 88%.
»»
Despite Asian increased Non-U.Sattention to the topic of board diversity, representation of minority directors at the top
200 S&P 500 companies has not significantly changed over the past five to 10 years.
––
8.2% of directors are African-American, compared with 9.5% in 2011 and 9.2 in 2006. 75% of boards
have at least one African-American director, a decline from 78% in 2011 and 80% in 2006.
––
4.8% of directors are Hispanic/Latino, up from 4.4 in 2011 and 3.6 in 2006. 47% of boards today have
at least one Hispanic/Latino director, up from 45% in 2011 and 35% in 2006.
––
1.8% of directors are Asian (non-Indian), versus 1.4% in 2011 and 0.7% in 2006. 18% of boards have
one or more Asian directors, up from 16% in 2011 and 7% in 2006.
Minorities as % of Directors at Top 200 Boards
77%
8%
5%
2%
8%
All non-minorities
African-American
Hispanic/Latino
Asian
Non-U.S.
Top 200 Boards with at Least One Minority Director
88% 88% 88%
75% 78% 80% 47% 45%
35%
2016
2011
2006
18% 16%
7%
All minorities
combined
African-American
Hispanic/Latino
Asian
20
spencer stuart

Few top 200 companies led by minorities
»
» Nine (5%) of the top 200 S&P companies are led by African-American, Hispanic/Latino or Asian CEOs,
three more than in 2015. In 2011, only five of the top 200 companies were led by minority CEOs.
»»
Similar to the pattern seen among companies led by women, companies led by minority CEOs have
more minority directors than other companies. 24% of the directors for the nine companies with
minority CEOs are minorities, compared with 14% of directors of companies with a non-minority CEO.
However, minority representation drops to 17% when the CEO is excluded.
Top 200 Minority-Led Companies and Their Boards *
Company CEO Total directors Minority directors Minority directors
as % of total
Archer-Daniels-Midland Company Juan R. Luciano 12 6 50%
Xerox Corporation Ursula M. Burns 8 3 38%
Eaton Corporation Craig Arnold 13 4 31%
NRG Energy Mauricio Gutierrez 10 3 30%
American Express Company Kenneth I. Chenault 13 3 23%
AbbVie Richard A. Gonzalez 9 2 22%
Merck & Co. Kenneth C. Frazier 13 2 15%
Carnival Corporation Arnold W. Donald 9 1 11%
United Continental Holdings Oscar Munoz 14 1 7%
Average % of minority directors for companies with minority CEOs 24% **
Average % of minority directors for companies with non-minority CEOs 14%
*
Accurate as of each company’s most recent proxy released by May 15, 2016.
**
Excluding the CEO, the average is 17%.
Just over half of the top 200 companies have directors from
outside the U.S.
»
» More than half of the top 200 S&P 500 companies (53%) have at least one non-U.S. director, a small
decline from 55% in 2015 but an increase from 45% in 2006.
»»
A total of 191 directors of non-U.S. origin serve on the boards of the top 200 companies, accounting for
8% of all directors, consistent with the past five years. For the purposes of this report, directors of Indian
descent are included within the non-U.S. group.
»»
International directors represent 33 different countries, but the majority of non-U.S. directors (58%)
come from the following five countries: India (16%), the U.K. (12%), Canada (11%), Germany (11%)
and France (8%).
»»
Among the S&P 500, 8% of all new independent director board seats were filled by directors from
outside the U.S., a decrease from 9% last year. More than half of the new directors from outside the
U.S. — 15 of 27 — are active or retired CEOs.
board index 2016 21

Board Composition
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: CEO succession planning
»»
Nearly one-quarter of respondents (24%) said their board formally discusses CEO succession two
or three times a year, up from 15% last year. 13% report that the board addresses CEO succession
four or more times per year, almost double the 2015 number of 7%. 60% of survey respondents said
their board formally discusses CEO succession annually, 3% address succession less than once a year.
»»
69% of respondents have contingency and long-term succession plans in place, while 25% have a
contingency succession plan only. Three companies have only a long-term plan, and two
companies have no CEO succession plan in place.
»»
This year, our survey delved more deeply into boards’ processes for understanding the readiness
of potential CEO succession candidates:
• 91% said the board’s process includes a briefing on potential successors’ gaps in readiness.
• 78% said the board is familiar with the development plans for addressing individuals’ gaps.
• 71% said internal succession candidates undergo formal assessments.
• 53% said the board defines the desired future criteria for the CEO profile as part of its process.
»»
42% said the process for reviewing potential internal successors is supported by an external adviser.
»»
36% report that their succession process includes gaining insight on potential external candidates.
Getting to know internal candidates
»»
66% of respondents said their boards have a formal process for reviewing internal succession candidates.
• 99% get to know internal succession candidates through regular interactions during board
meetings and presentations.
• 34% schedule individual meetings between board members and candidates.
• 8% assign formal board mentors.
• 7% said they use other methods, such as company events and feedback from an external adviser.
The number of CEOs serving on an outside public company
board remains at historic low
»
» Only 43% of S&P 500 CEOs serve on an outside corporate board in addition to their own board, the
same as in 2015, when the number of CEOs with outside boards hit a new low. A decade ago, 55% of
CEOs served on at least one outside board.
»»
35% of CEOs serve on one outside board, and 8% serve on two. Only two CEOs have three outside
board assignments. In 2006, 19% of CEOs served on two outside boards and 4% (20) served on three.
One CEO served on four outside boards.
»»
CEOs serve on an average of 0.5 other corporate boards, compared with 0.6 in 2011 and 0.8 in 2006.
22
spencer stuart

27% of boards have a truly independent chair, a small decline
from last year
»»
48% of S&P 500 boards split the chair and CEO roles between two individuals, the same as in 2015.
During the past decade, more boards have evaluated their leadership structures, with a growing number
opting to separate the roles. 41% of S&P 500 boards in 2011 and 33% in 2006 split the roles.
»»
132 boards (27% versus 29% in 2015) have a truly independent chair — an independent director or
e Company a former executive who has met applicable NYSE or NASDAQ rules for independence over time.
er CEO or current Although executive their number Outside decreased relat-from
last year, boards are more likely to have an independent chair
than five and 10 years ago, when 21% and 10% of boards, respectively, had truly independent chairs.
Eight of the independent chairs today are founders or former CEOs or COOs who met independence
standards over time.
»»
13% of chairs are company executives other than the CEO, and 6% had been the CEO and are no longer
a company executive.
»»
Among the 97 boards where the chair is separate but not independent, 89 (92%) have identified a lead
or presiding independent director.
Chairman’s Relationship with the Company
52%
27%
19%
1%
1%
Current CEO
Independent director
Former CEO or current executive
Outside related director
Role in transition
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: The chairman and CEO split
»»
12% of respondents said their board split the chairman and CEO roles in the last proxy year, while
33% said their board has discussed splitting the roles within the next five years.
»»
Of those that have recently separated (or expect to separate) the chair and CEO roles, 72% say the
primary reason for the change is a CEO transition, while 20% believe the chair/CEO split
represents the best governance.
board index 2016 23

Board Composition
More than half of independent chairs are retired
senior executives
»
» 51% of the 132 independent chairs of S&P 500 companies are retired chairmen, vice chairmen, presidents
or CEOs. Only 5% of independent chairs are active executives in these roles, including one current publiccompany
CEO. In 2011, 52% of chairs were retired senior executives and 9% were active.
»»
14% of the independent chairs are investors or investment managers, and another 12% are other
corporate executives, active or retired, including division presidents and line and functional leaders.
»»
The remaining independent chairs are financial executives, bankers/investment bankers and retired
public accounting executives (12%); academics and nonprofit executives (2%); and others, including
lawyers and consultants (4%).
»»
Independent chairman are older on average than their fellow directors: 66.1 versus 63.1.
»»
There are 10 women serving as independent chairs, 8% of all independent chairs.
Independent Chairman Backgrounds
51%
14%
12%
5%
12%
2%
4%
Retired chair/president/CEO
Investor/investment manager
Active/retired other corporate executive
Active chair/president/CEO
Bankers/financial executives/CFOs/public accounting
Academics/nonprofit executives
Others
»»
The average tenure for current independent chairs is 4 years. 57% have been in the role for three years or
less, including 29% who have served as chair for one year or less. On the other end of the spectrum,
31% of independent chairmen have served in their roles for six or more years. The longest-serving
S&P 500 independent chairman has been in the position for 18 years.
»»
92% of the independent chairmen previously served as directors on the board before becoming chair,
serving 8.4 years on average before moving into the chairman role.
Independent Chairman Tenure
29% 28% 12% 21%
0 to 1
year
2 to 3
years
4 to 5
years
6 to 9
years
10%
10 or more
years
Average: 4.0 years
N=132 independent chairmen
24
spencer stuart

Despite decline, most boards have a lead or presiding director
»»
87% of S&P 500 boards report having a lead or presiding director, nearly all of whom (98%) are
identified by name in the proxy.
»»
The number of lead and presiding directors has declined over the past decade as more boards named
independent chairs. 92% of S&P 500 boards had a lead or presiding director in 2011, down from 96%
in 2006.
»»
1% of boards rotate the role among independent directors and committee chairs compared to 5% of
boards five years ago.
»»
Lead directors are more common than presiding directors; of the 417 boards with one of these titles,
71% have lead directors and 29% have presiding directors, including those identified as “chair” of
executive sessions. This represents a change from a decade ago, when 64% of boards had a presiding
director and 36% had a lead director.
»»
74 independent chairs are also named as the lead or presiding director. Another seven boards report
having a lead/presiding director in addition to the independent chair.
»»
Only five S&P 500 boards do not report having a form of independent board leadership — neither an
independent chairman nor a lead/presiding director. Often, this is a temporary situation during a
leadership transition and restructuring.
Lead Versus Presiding Directors
2016 2011 2006
Lead directors 71% 54% 36%
Presiding directors 29% 46% 64%
»»
328 boards (81%) disclosed how long their lead/presiding director has been serving in the role, reporting
an average tenure of 3.7 years. 33% have served in the role one year or less, 36% have served for two to
four years while 31% have been serving for five years or more.
»»
Retired CEOs, presidents and/or chairs are most likely to serve as a lead or presiding director; 47% of
lead/presiding directors are retired senior executives. 11% are investors or investment managers, and
another 11% are active or retired other corporate executives. Only 10% of lead/presiding directors are
active CEOs, presidents and/or chairs.
board index 2016 25

Board Composition
Lead and Presiding Director Backgrounds *
47%
11%
11%
10%
5%
5%
4%
4%
3%
Retired chair/president/CEO/COO/vice chairman
Investor/investment manager
Other corporate executives
Active chair/president/CEO/COO/vice chairman
Academic/nonprofit
Banker/investment banker
Financial executives/CFOs/treasurers/public accounting executives
Consultant/other
Lawyer
N = 405 lead or presiding directors identified by name
*
All active and retired unless where specifically stated.
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Lead director
»»
81% of survey respondents reported that the lead or presiding director is selected by the full
board. The lead or presiding director is chosen by the nominating and governance committee at
26% of responding companies. Three boards reported that the CEO selects the lead director, and
on one board, the outgoing lead director names a successor. Among the 14% of “other”
responses, most indicated that the independent directors select the lead director.
»»
Among boards with a lead or presiding director, 46% said there is no set term length for the
position. Of those that that define some limit, 19% have a one-year term, 6% have a two-year term
and 4% have a three-year term. Other approaches include a three-to-five-year term guideline, a
five-year term or an understanding that the board will consider rotating the position every two years.
»»
90% said the lead/presiding director’s term is renewable.
26
spencer stuart

Board Organization and Process
2016 Snapshot
71 %
of boards have more
than 3 committees
99 % of boards conduct an
evaluation on the full
board of directors
Boards met
an average of
8.4
times
up from
8.1
last year
Only
6 %
of audit committee chairs
are active CEOs and chairs
versus 18% a decade ago
Modest rise in the average number of board meetings
»
meetings rose from 7.0 last year to 8.0. The annual meeting average includes regularly scheduled
meetings and special meetings. These meetings may be in-person or telephonic.
»»
The majority of boards, 54%, met six to nine times. Ten boards met 19 times or more.
» Boards met an average of 8.4 times, up from 8.1 last year and 8.2 five years ago. The median number of
Distribution of Board Meetings *
20% 54% 15% 11%
5 or fewer
meetings
6 to 9 10 to 12 13 or more
*
Includes in-person and telephonic regular and special meetings.
board index 2016 27

oard organization and process
ttees
or more
Boards have four committees on average
»
» A majority of S&P 500 boards, 71%, have more than the three NYSE-mandated committees
(compensation, audit and nominating/governance).
»»
Boards have an average of 4.2 standing committees and a median of four committees, which has
remained consistent during the past decade.
»»
21% of boards have five standing committees, and 14% have six or more.
»»
The most common committees beyond the compensation, audit and nominating/governance
committees are the executive committee (33%) and finance committee (31%).
»»
Several committees have become more prevalent in the past 10 years, including risk, science/
technology, and environment, health and safety. In 2006, for example, 4% of boards had a risk
committee, compared with 11% today. By contrast, the number of public policy/social & corporate
responsibility committees have declined somewhat.
Number of Standing Committees
29%
36%
21%
11%
3%
3 or fewer
4
5
6
7 or more
Prevalence and Independence of Standing Committees
% with this committee % composed entirely of
independent directors
2016 2011 2016 2011
Audit 100% 100% 100% 100%
Compensation 100% * 100% 100% 99.6%
Nominating/governance 99.6% ** 98.8% 99.8% 99.6%
Executive 33% 35% 4% 3%
Finance *** 31% 33% 78% 70%
Risk 11% 8% 85% 74%
Public policy/social & corporate responsibility 10% 14% 88% 84%
Science & technology 9% 6% 88% 77%
Environment, health & safety 7% 6% 80% 86%
Legal/compliance 5% 5% 91% 87%
Strategy & planning 2% 3% 60% 80%
Investment/pension 3% 2% 75% 83%
Acquisitions/corporate development 2% 2% 50% 64%
*
14 boards have a combined compensation and nominating committee. They are counted as separate committees for the purpose of this analysis.
**
Includes one board with a standing corporate governance committee in addition to the nominating committee. Controlled companies are not
required to have nominating committees.
***
11 boards have a combined finance and risk management committee. They are counted as separate committees for the purpose of this analysis.
28
spencer stuart

ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Cybersecurity
»»
Major information security breaches to business or government systems regularly hit the news,
and boards increasingly recognize that cyber crime is a risk management issue that affects the
entire organization and belongs on the board agenda.
»»
One-quarter of survey respondents said the full board is responsible for cybersecurity oversight,
while 75% said the board has assigned cybersecurity oversight to a specific board committee. Of
those, 74% said the audit committee oversees cybersecurity risk, and 14% said the risk committee
is responsible. Responsibility for cyber risk falls to the technology committee for 5% of boards.
»»
88% of respondents said the board or a committee has discussed the company’s crisis response
plan to a cyber breach within the past year.
Audit committees average more than eight meetings
»
» Audit committees averaged 8.6 meetings, a slight decrease from 8.8 last year and roughly one meeting
less than the 2006 average of 9.5.
»»
68% of S&P 500 audit committees met eight or more times annually, including 48% that had eight, nine
or 10 meetings. 20% of audit committees met 11 times or more, compared with 37% a decade ago.
»»
Compensation and nominating/governance committees meet less often, averaging 6.1 and 4.8 meetings
annually, respectively.
»»
43% of compensation committees held five or six annual meetings.
»»
74% of nominating/governance committees met five times or fewer annually, with 29% meeting
four times.
Distribution of Committee Meetings *
Audit committee Compensation committee Nominating/governance committee
3 or fewer meetings 1% 7% 20%
4 5% 14% 29%
5 11% 23% 25%
6 6% 20% 13%
7 9% 16% 9%
8-10 48% 15% 4%
11-13 16% 4% 0%
14 or more 4% 1% 0%
Average 8.6 6.1 4.8
Median 9.0 6.0 5.0
Maximum 24 16 19
*
Includes in-person and telephonic regular and special meetings.
board index 2016 29

oard organization and process
Finance professionals continue to grow as a source for audit
committee leadership
»
» 28% of audit committee chairmen are active/retired financial executives, including CFOs and treasurers,
an increase from 21% in 2011 and 13% in 2006. Retired CEOs, chairs, presidents and COOs make up the
next largest source, accounting for 27% of audit committee chairs. Retired public accounting executives
are the next largest source, representing 11% of audit committee chairs.
»»
Meanwhile, active CEOs, chairs, presidents and COOs are much less likely to head an audit committee
than in the past, reflecting the increased workload and demands of audit committee service. Just 6% of
S&P 500 audit committee chairs are fully employed/active CEOs, chairs, presidents and COOs,
compared with 18% a decade ago.
»»
25% of all S&P 500 directors have been identified as audit committee financial experts, compared with
20% of directors in 2006.
Increase seen in number of women leading audit, compensation
and nominating committees
»
» The representation of women in committee leadership roles increased slightly since last year. Women now
chair 20% of nominating/governance committees, 15% of audit committees and 11% of compensation
committees, compared with 16%, 13% and 10%, respectively, last year. In 2011, women chaired 13% of
audit committees, 8% of compensation committees and 16% of nominating/governance committees.
»»
Retired CEOs, chairs, presidents and COOs are the most common backgrounds of compensation and
nominating/governance committee chairs; 43% of compensation committee chairs and 31% of
nominating/governance committee chairs are retired top senior executives.
»»
Active CEOs and other top senior executives are more likely to serve as chair of the compensation and
nominating/governance committees than the audit committee. 14% of directors with these profiles
serve as compensation committee chair, and 13% as nominating/governance committee chair. Five
years ago, 20% of compensation committee chairs and 15% of nominating/governance committee
chairs were filled by active CEOs, chairs, presidents and COOs.
30
spencer stuart

ions
es and directors
Committee Chairman Backgrounds *
% of chairmen
Audit committee Compensation committee Nominating/governance
committee
Retired chair/president/CEO/vice chairman 27% 43% 31%
Active chair/president/CEO/vice chairman 6% 14% 13%
Financial executive/CFO/treasurer 28% 2% 2%
Public accounting executive 11% 0% 1%
Investor/investment manager 7% 11% 13%
Other corporate executive 9% 16% 14%
Academic/nonprofit 3% 5% 10%
Consultant 3% 3% 5%
Banker/investment banker 6% 4% 3%
Lawyer 0% 1% 5%
Other 0% 1% 3%
Total number of chairmen listed in proxies 475 473 473
*
Except where noted, all categories include active and retired executives.
Nearly all boards conduct an annual performance evaluation
»»
All but seven Full S&P board 500 only boards (99%) report conducting some sort of annual performance evaluation.
»»
More than half of boards (54%) evaluate the full board and committees, and nearly one-third (32%)
evaluate the full board, committees and individual directors annually. This represents an increase from
2011, when 29% examined the performance of the board, committees and individual directors as part of
luations in their their proxies annual or evaluations. corporate
»»
Thirteen boards disclosed that they engaged an independent third party to facilitate and conduct all or a
portion of the evaluation process.
Board, Committee and Director Evaluations
54%
32%
10%
4%
Full board and committees
Full board, committees and directors
Full board only
Full board and directors
N = 475 companies; 7 others did not mention evaluations in their proxies or corporate governance guidelines.
board index 2016 31

oard organization and process
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Board evaluations
»»
35% of survey respondents report that they assess the full board, board committees and
individual directors as part of a board evaluation. 66% evaluate the full board and committees,
but not individual directors. 11% said only an evaluation of the full board is conducted. (Note:
Respondents could select multiple responses.)
»»
Evaluations are most often conducted by a director, typically the chairman, lead director or a
committee chair, according to 65% of respondents. A wide range of internal and external parties
are also tapped to conduct board assessments, including in-house and external legal counsel, the
corporate secretary and board consulting firms. 35% use director self-assessments, and 15%
include peer reviews.
ADDED PERSPECTIVE
Spencer Stuart Governance Survey: Shareholder engagement
»»
Proxy access emerged as the top issue
formally raised by shareholders during Issues formally raised by shareholders in 2016 *
the most recent proxy year, accounting for
19% of shareholder contacts, followed by
inquiries related to director tenure (11%).
Proxy access
Director tenure
Independent board chair
19%
11%
10%
»»
Other topics on the minds of shareholders
were CEO compensation (10%), board
chair independence (10%) and “say on
pay” (9%). Board refreshment and
company political contributions and
activities each accounted for 7% of
shareholder contacts.
»»
As in past years, public and private pension
funds were the most likely to initiate contact
with the boards, although they represented
a smaller share of the total contacts than in
the past. Accounting for 39% of the
inquiries (versus 51% in 2015), pension
funds were most likely to contact boards
about proxy access, director tenure and
board chair independence.
CEO compensation 10%
Say on pay 9%
Disclosure of political contributions/activities 7%
Board refreshment 7%
Company strategy 6%
Shareholder engagement approach 5%
Director slate 4%
Strategic alternatives (e.g., M&A, divestiture) 3%
Other 8%
Sources of shareholder contacts *
Public/private pension fund 39%
Mutual fund 26%
Activist shareholder 17%
Hedge fund/private equity 6%
Other 11%
*
Percentages may not total 100% due to rounding.
32
spencer stuart

ADDED PERSPECTIVE (continued)
»»
Inquiries from mutual funds, which
represented 26% of shareholder contacts
(an increase from 16% last year), tended to
be about proxy access, CEO compensation,
director tenure and board refreshment.
»»
Activist shareholders accounted for 17% of
the inquiries, and their top issues were proxy
access, companies’ political contributions/
activities and strategic alternatives.
Responsible for representing the board in nonroutine
matters with the public/investors *
Chairman/CEO (if combined) 46%
CEO (if split) 32%
Lead director 30%
Chairman (if split) 18%
Other 26%
*
Multiple answers allowed. Others included CFO, head of investor
relations, general counsel and chairs of the applicable committees.
»»
Some 83% percent of respondents said
management or the board proactively
reached out to the company's large institutional investors or largest shareholders, an increase
from 70% the year prior. The most common topic about which companies engaged with
shareholders was proxy access (52%), an increase from 33% in 2015. Other topics boards
discussed with large institutional investors and large shareholders included say on pay (51%),
CEO compensation (40%), director tenure (30%), board refreshment (27%), shareholder
engagement approach (27%) and chairman independence (24%).
»»
Survey respondents also wrote in more than a dozen additional topics, including majority/cumulative
voting, disclosure enhancements, environmental issues and gender pay equity.
»»
Despite the growing interest by shareholders in board composition, only 3% of survey
respondents reported that their companies’ large institutional shareholders recommended
changes to board composition.
»»
39% of respondents reported that they were contacted formally by large institutional investors
and/or largest shareholders specifically regarding a governance-related topic.
»»
For most companies responding to the survey, the CEO is responsible for representing the board
in non-routine matters with the public and investors: 46% said the chairman/CEO had the
responsibility for representing the board, and 32% said the CEO had the responsibility when there
was a separate chair. Another 30% said the lead director represented the board with investors and
the public. 18% said the non-CEO chairman had the responsibility.
board index 2016 33

oard organization and process
Director Compensation
2016 Snapshot
3
Average per-director
compensation rose
%
to
$285,065
76 % of S&P 500 boards
provide stock grants
to directors in addition to
paying a cash retainer
Annual retainers
grew by
6 % last year
Additional compensation for
independent chairmen averages
$165,112
a 2% decrease
Average total director compensation grows by 3%
»
» The average total compensation for S&P 500 directors is $285,065, 3% higher than the 2015 average.
When premium compensation for the independent chairman is excluded, the average total
compensation per director falls to $280,389.
»»
Over time, the compensation mix for directors has evolved, with more stock grants and fewer stock
options. Today, stock grants represent 54% of total director compensation, versus 48% five years ago,
while stock options represent 6% of compensation today, down from 10% five years ago. Cash accounts
for 38% of director compensation, versus 39% in 2011.
»»
73% of boards have deferred compensation plans.
34
spencer stuart

Breakdown of Director Compensation *
54%
6%
38%
2%
Stock awards
Option grants
Cash fees **
All other compensation ***
*
Based on non-employee director compensation tables in 477 proxies for fiscal year 2016. Includes all board and committee retainers and meeting fees, non-executive chairman and
lead/presiding director supplemental fees when applicable, the value of equity compensation and all other compensation paid to non-employee directors in 2015. Retiring and new
directors are included when paid compensation for at least three quarters of the year.
**
Includes deferred compensation amounts.
***
Includes, for example, insurance premiums, charitable award programs and incremental cost to company of products provided.
Changes in Non-employee Director Compensation
% of boards paying this type Average paid % of change in value
Type of compensation 2016 2011 2016 2011 2011-16
Board retainer * 99.6% 99.2% $118,521 $88,858 33%
Board meeting fee 16% 37% $2,155 $2,284 -6%
Committee chair retainer 95% 91% $15,370 $12,476 23%
Committee member retainer 41% 37% $7,947 $7,917 less than 1%
Committee member meeting fee 21% 35% $1,677 $1,635 3%
Stock option program 14% 28% n/a n/a n/a
Stock grants paid in addition to retainer 76% 77% n/a n/a n/a
*
Dollar amounts for retainer do not include boards that do not pay a retainer or boards that do not provide a dollar value equivalent for the retainer
equity amount.
6% increase in average annual board retainer
»
» The average annual retainer for S&P 500 directors is $118,521, which is 6% more than in 2015 and 86%
more than in 2006, without adjusting for inflation. During the past decade, one-year increases have
ranged from as little as 1% to as much as 11%. The median annual retainer, $100,000, is double the
median in 2006, $50,000.
»»
Half of boards provide an annual retainer of $100,000 or more, up from 29% in 2011 and 15% in 2006.
»»
90 boards (18%) pay a retainer of $200,000 or more, compared with 42 boards (9%) in 2011 and 11
boards (4%) in 2006.
»»
On the other end of the spectrum, 3% of boards today have retainers less than $50,000, compared with
14% five years ago and 38% a decade ago.
»»
The highest annual retainer is $325,000, which is paid by a board that does not provide meeting
attendance fees. Three companies provide no retainer; one of these pays $900 per meeting, one pays
$15,000 per meeting (not to exceed $60,000 per year), and one only provides a stock option grant.
»»
Our research has shown that four boards have reduced director compensation for the upcoming fiscal year in
response to pressure on the company share price and market conditions. Similarly, four boards have capped
board compensation by placing a dollar limit on the value of equity compensation provided to directors.
board index 2016 35

oard organization and process
Annual Board Retainers and Yearly Increases
$120,000
14% 14%
2016 annual board retainer
Past years annual board retainer
Yearly percentage increase
$100,000
12%
11%
$80,000
$60,000
$40,000
8%
9%
5%
9%
6% 6%
5%
4%
$20,000
0
2004
2005
2006
2007
2008
2009
1%
2010
2011
2012
2013
2014
2015
2016
Use of meeting fees for director compensation hits new low
»
» Only 78 S&P 500 boards (16%) pay board meeting attendance fees in 2016, down from 21% last year,
and 57% in 2006.
»»
The average board meeting attendance fee increased to $2,155 from $2,041 last year. Fees range from a
low of $900 to a high of $15,000 at one company, where meeting fees are paid in lieu of a retainer and
capped at $60,000 per year. 38% of companies pay $1,500 per meeting, 29% pay $2,000 and 21% pay
more than $2,000.
»»
15 boards (3%) pay a lower fee for telephonic meetings. The average telephonic meeting fee is $1,197.
Two boards only pay a telephonic board meeting fee.
»»
Among the boards that pay meeting fees, 25 boards compensate directors for meetings in addition to
regularly scheduled board meetings; the fee for meetings in excess of regularly scheduled board
meetings averages $2,068. Seven other boards compensate directors only for attendance at special
board meetings. The average special board meeting fee is $2,000.
36
spencer stuart

Three-quarters of boards grant stock to directors as
part of compensation
»
» 76% of S&P 500 boards provide stock grants to directors in addition to paying a cash retainer, compared
with 64% a decade ago. The average targeted dollar value of annual stock grants is $155,328.
»»
By comparison, stock options for directors have become much less common. 14% of S&P 500
companies now offer option plans, compared with 51% in 2006. The average targeted value of annual
stock option grants is $95,402.
»»
51% of boards allow directors to choose to receive their compensation in cash, stock or stock units, but
only 4% offer stock options as an alternative choice.
»»
Eight boards, 2% of the total, pay director retainers fully in stock.
»»
91% of boards disclose having share ownership guidelines for directors, which are meant to align
directors’ interests with those of stockholders. A decade ago, 62% disclosed director share ownership
guidelines. Typically, these guidelines require directors to own a certain number of shares or a multiple
of the retainer value within a specified number of years.
Equity Compensation
% of S&P 500 boards
2016 2011 2006
Stock option program exists 14% 28% 51%
Equity paid in addition to retainer 76% 77% 64%
Equity paid as a part of retainer 22% 18% 21%
Director can elect to receive compensation in cash, stock, or stock units 51% 57% 60%
Director can elect to receive compensation in stock options 4% 5% 7%
Retainer paid fully in stock 2% 2% 3%
Most boards provide a premium for board leadership service
»
» 95% of the 132 independent chairmen of S&P 500 boards receive an additional fee, which ranges from $25,000
to $820,546 and averages $165,112. The median premium paid to independent chairmen is $150,000.
»»
65% of the 417 S&P 500 boards with a lead or presiding director provide additional compensation to
directors serving in those roles, compared with 61% of boards one year ago.
»»
Lead directors are more likely than presiding directors to receive additional compensation: 80% versus
27%. The average lead director premium is $33,565, 5% higher than the $31,848 average premium for
presiding directors.
»»
Supplemental compensation for lead and presiding directors ranges from $6,000 to $175,000 and
averages $33,354 for the combined roles.
board index 2016 37

oard organization and process
Nearly all boards provide extra compensation for chairing
a committee
»
» 95% of S&P 500 boards included in our study provide a retainer to committee chairmen, an increase
from 91% in 2011 and 84% in 2006. Among these boards, 86% pay a higher retainer to the audit
committee chair, and 58% pay more to the compensation committee chair.
»»
The average retainer for all committee chairs is $15,370, an increase from last year’s average of $14,399.
»»
Retainers for audit and compensation committee chairs average $24,989 and $20,916, respectively.
»
» The lowest committee chair retainer is $3,000, while the highest committee chair retainer — paid to an
audit chair — is $75,000.
Compensation for committee service has become more common
»»
41% of boards pay a retainer for committee member service, averaging $8,947. A decade ago, 29% of
boards provided a retainer for committee service, which averaged $6,431.
»»
87% provide a different retainer for audit committee service, which averages $13,015.
»»
39% of boards now provide a higher premium for compensation committee service, an increase from
24% in 2011 and 8% in 2006. The average compensation committee member retainer is $11,851.
Committee Retainers
Average committee retainers
% of boards paying this type
2016 2011 2016 2011
All committee members $8,947 $7,917 41% 37%
Compensation committee members $11,851 $10,600 39% 24%
Audit committee members $13,015 $10,796 87% 89%
All committee chairs $15,370 $12,476 95% 91%
Compensation committee chairs $20,916 $16,761 58% 40%
Audit committee chairs $24,989 $21,382 86% 86%
One-fifth of boards pay committee meeting fees
»
» Similar to board meeting attendance fees, committee meeting fees have declined as a component of
director compensation. 21% of S&P 500 boards pay committee meeting fees, down from 26% last year and
59% a decade ago. The average committee meeting fee is $1,677, a $1 less than last year’s average.
»»
12% of the 99 boards that provide committee meeting fees pay a higher amount for audit committee
meetings than for other committee meetings. The $2,392 average audit committee meeting fee is 43%
higher than the average for all committees. Just five companies pay a higher meeting fee for
compensation committee meetings, averaging $2,300.
»»
16% of the boards providing committee meeting fees pay a different amount for telephonic meetings,
which averages $911. One board pays a higher fee for telephonic audit committee meetings, $2,000.
»»
Only three boards (1%) pay meeting fees to committee chairs, compared with 11% 10 years ago. The
average chair committee meeting fee is $2,550.
38
spencer stuart

Small number of boards provide extra compensation for special
committee service
»»
Seven boards (1%) reported providing additional compensation to directors serving on a special
committee. Supplemental retainers for service on special committees ranged in amounts from
$10,000 to $22,500.
»»
Among boards that disclosed the purposes of the special committees, reasons included: addressing
shareholder demands (three boards), CEO search or succession planning (one board), overseeing
equity investments (one board), SEC and internal investigation (one board), and mergers and
acquisitions (one board).
Director compensation in healthcare sector tops S&P 500
average by 29%
»
» Director compensation within the healthcare sector averages $369,080, which is 29% higher than the
S&P 500 average. By contrast, the $244,135 average paid to directors in the utility sector, which has the
lowest average compensation of all sectors, is 14% lower than the S&P 500 average.
»»
Cash represents a larger share of compensation in industry sectors such as utilities and materials,
48% and 45%, respectively, and a smaller share in the healthcare and information technology sectors,
31% and 33%, respectively.
»»
Stock awards account for 59% of director compensation among information technology companies
and 58% in consumer staples companies, but just 50% of director compensation for materials and
utilities companies.
Average Compensation per Non-employee Director by Industry *
% of total compensation
Industry
Total average
compensation
Cash fees ** Stock awards Option grants All other
compensation ***
Consumer discretionary $257,811 38% 56% 4% 2%
Consumer staples $284,354 36% 58% 4% 2%
Energy $313,712 37% 56% 3% 4%
Financials $258,712 42% 54% 2% 2%
Healthcare $369,080 31% 51% 17% 1%
Industrials $267,205 43% 51% 3% 3%
Information technology $315,618 33% 59% 7% 1%
Materials $266,940 45% 50% 1% 4%
Telecommunication services $276,786 44% 55% 0% 1%
Utilities $244,135 48% 50% 0% 2%
Average $285,065 38% 54% 6% 2%
*
Based on non-employee director compensation tables in 477 proxies for 2016. Includes all board and committee retainers and meeting fees, nonexecutive
chairman and lead/presiding director supplemental fees when applicable, the value of equity compensation and all other compensation
paid to non-employee directors in fiscal year 2015. Retiring and new directors are included when paid compensation for at least three quarters of
the year.
**
Includes deferred compensation amounts.
***
Includes insurance premiums, charitable award programs and incremental cost to the company of products provided to directors.
board index 2016 39

oard organization and process
Southwest sees the largest gain in director compensation
»
» Director compensation for boards in the Southwestern U.S. grew by 5% — the largest regional increase
— bringing average director compensation to $292,608. Boards in the Northeast and Southeast regions
each had 1% decreases in average director compensation.
»»
Average director compensation for companies in the West, already the region with the highest director
compensation, rose 1% to $305,832.
»»
Average director compensation in the Midwest region rose 4% to $258,470.
»»
The spread between the highest- and lowest-paying regions has decreased since last year. This year the
difference between the regions with the highest and lowest average director compensation was $48,144,
compared with $51,468 in 2015.
Greatest gain in compensation seen for directors of smaller
S&P 500 companies
»»
Average compensation for directors of companies with revenue less than $2.5 billion grew by 8% to
$282,311, bringing the compensation for these directors higher than the average for directors of
companies in the $2.5-$10 billion revenue range.
»»
Directors of the largest companies, with revenue greater than $10 billion, receive $293,425 in annual
compensation on average, 4% more than the average compensation for directors of companies with
revenue less than $2.5 billion.
Average Director Compensation by Region and by Sales
By region
By sales
West $305,832 Less than $2.5 billion $283,213
Southwest $292,608 $2.5-$10 billion $275,355
Northeast $298,940 Greater than $10 billion $293,425
Northwest $257,688
Southeast $270,417
Midwest $258,470
40
spencer stuart

Comparative Board Data
Methodology:
Based on the S&P 500 as of May 15, 2016. Fiscal year 2015 company sales data obtained from Hoovers; industry/sector categories from Capital
IQ. All remaining data were culled from the most recent DEF14A proxy statements released between May 15, 2015 and May 15, 2016. Total average
compensation per non-employee director is based on non-employee director compensation tables included in 477 proxies. Amount includes
all board and committee retainers and meeting fees, supplemental non-executive chairman and lead/presiding director fees, the value of equity
compensation, and all other compensation paid in fiscal year 2015.
board index 2016 41

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Consumer Discretionary
Advertising
The Interpublic Group of Companies 7,613.8 10 9 N 64 7 74 11 100,000 b 270,516 39% 55% 0% 6%
Omnicom Group 15,134.4 14 12 Y 70 15 75 7 75,000 b,c 262,325 52% 48% 0% 0%
Apparel Retail
Foot Locker 7,412.0 10 9 Y 65 11 72 5 130,000 b,c,d 262,381 39% 61% 0% 0%
The Gap 15,797.0 10 8 Y 63 12 72 8 75,000 b 265,749 44% 53% 0% 3%
L Brands 11,454.0 11 8 N 71 17 - 7 223,800 d 271,003 52% 48% 0% 0%
Ross Stores 11,041.7 11 7 Y 61 13 - 5 187,500 d 219,187 38% 62% 0% 0%
The TJX Companies 29,078.4 10 8 Y 63 12 75 7 75,000 b 286,959 38% 62% 0% 0%
Urban Outfitters 3,445.1 9 7 N 62 17 - 5 100,000 e 249,200 40% 60% 0% 0%
Apparel, Accessories & Luxury Goods
Coach 4,191.6 8 7 Y 53 6 - 6 75,000 b,c,e 248,977 40% 30% 30% 0%
Hanesbrands 5,731.6 10 9 N 64 7 72 5 95,000 b 242,987 41% 59% 0% 0%
Michael Kors Holdings Limited 4,371.5 8 6 N 63 4 - 5 60,000 b 245,000 39% 61% 0% 0%
PVH Corporation 8,020.3 10 9 N 58 8 72 7 70,000 b 230,777 41% 59% 0% 0%
Ralph Lauren Corporation 7,405.0 11 8 N 72 12 - 4 70,000 b 189,253 47% 26% 27% 0%
Under Armour 3,963.3 10 8 N 63 8 75 13 75,000 b,c 213,611 41% 59% 0% 0%
V.F. Corporation 12,376.7 12 10 N 59 9 72 7 90,000 b,c,e 249,682 39% 29% 30% 2%
Auto Parts & Equipment
BorgWarner 8,023.2 10 9 Y 66 11 72 7 92,000 b 235,503 51% 49% 0% 0%
Delphi Automotive 15,165.0 13 12 Y 64 5 75 12 250,000 c,d 279,083 37% 63% 0% 0%
Johnson Controls 37,179.0 10 9 N 59 9 72 16 265,000 c,d 279,444 48% 52% 0% 0%
Automobile Manufacturers
Ford Motor Company 149,558.0 14 11 Y 65 10 72 8 250,000 c,d,f 295,353 37% 51% 0% 12%
General Motors Company 152,356.0 12 10 N 63 4 72 12 250,000 c,d,f 295,534 27% 69% 0% 4%
Automotive Retail
Advance Auto Parts 9,737.0 12 9 Y 59 8 72 5 85,000 b 232,143 46% 54% 0% 0%
AutoNation 20,862.0 10 9 N 51 7 - 15 50,000 b 366,867 18% 82% 0% 0%
AutoZone 10,187.3 11 10 N 60 9 75 4 200,000 d,g,h 212,653 13% 87% 0% 0%
CarMax 15,149.7 11 10 Y 63 8 76 5 205,000 d 232,950 43% 56% 0% 1%
O'Reilly Automotive 7,966.7 9 5 Y 69 13 78 4 50,000 b 198,532 61% 39% 0% 0%
Broadcasting
CBS Corporation 13,886.0 13 8 N 76 10 - 7 100,000 b,c 332,247 37% 61% 0% 2%
Discovery Communications 6,394.0 10 9 Y 67 9 - 15 90,000 b 258,945 44% 55% 0% 1%
Scripps Networks Interactive 3,018.2 12 11 N 58 6 72 8 50,000 b,c,e 236,445 37% 31% 32% 0%
TEGNA 3,050.9 10 9 Y 60 5 70 10 100,000 b,c 206,302 46% 52% 0% 2%
Cable & Satellite
Comcast Corporation 74,510.0 11 9 N 64 8 72 9 100,000 b,c 311,880 45% 55% 0% 0%
Casinos & Gaming
Wynn Resorts Limited 4,075.9 9 7 N 68 8 - 10 60,000 b,e 399,311 37% 62% 0% 1%
Computer & Electronics Retail
Best Buy Co. 39,528.0 10 9 N 57 5 75 7 85,000 b,c 271,353 34% 66% 0% 0%
42
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Consumer Electronics
Garmin 2,820.3 5 4 Y 66 8 - 4 85,000 b 205,390 39% 61% 0% 0%
Harman International Industries 6,155.3 11 10 N 64 8 75 7 80,000 b 239,822 44% 56% 0% 0%
Department Stores
Kohl's Corporation 19,204.0 10 9 N 58 10 72 7 100,000 b 234,967 57% 43% 0% 0%
Macy's 27,079.0 13 12 N 58 8 74 8 70,000 b,c 243,798 38% 57% 0% 5%
Nordstrom 14,437.0 12 9 Y 57 6 72 5 85,000 b,c 255,444 38% 62% 0% 0%
Distributors
Genuine Parts Company 15,280.0 13 10 N 63 7 72 4 60,000 b 258,944 29% 71% 0% 0%
Footwear
NIKE 30,601.0 13 9 Y 60 9 72 5 85,000 b 283,126 32% 61% 0% 7%
General Merchandise Stores
Dollar General Corporation 20,368.6 8 7 Y 59 6 76 10 85,000 b 224,055 44% 55% 0% 1%
Dollar Tree 15,498.4 11 9 Y 68 12 - 6 180,000 c,i 206,111 100% 0% 0% 0%
Target Corporation 73,785.0 14 13 N 59 7 72 7 260,000 c,d 282,105 33% 67% 0% 0%
Home Furnishing Retail
Bed Bath & Beyond 12,103.9 10 7 Y 64 13 - 11 100,000 b,c 201,071 55% 45% 0% 0%
Home Furnishings
Leggett & Platt 3,917.2 9 7 Y 66 14 72 4 195,000 c,d 247,687 31% 61% 0% 8%
Mohawk Industries 8,071.6 9 7 N 63 8 75 5 80,000 b,c 177,877 49% 51% 0% 0%
Home Improvement Retail
The Home Depot 88,519.0 12 11 N 58 6 72 7 280,000 c,d,f 299,545 21% 77% 0% 2%
Lowe's Companies 59,074.0 11 10 N 62 5 72 5 80,000 b,c 241,456 36% 64% 0% 0%
The Sherwin-Williams Company 11,339.3 11 9 Y 61 7 72 6 110,000 b,c 262,056 45% 55% 0% 0%
Homebuilding
D.R. Horton 10,824.0 5 4 Y 64 11 75 8 - b 199,404 39% 61% 0% 0%
Lennar Corporation 9,474.0 9 8 Y 67 13 - 5 90,000 b,d,e 253,617 34% 59% 6% 1%
PulteGroup 5,982.0 10 9 N 60 8 75 6 235,000 d 251,139 44% 56% 0% 0%
Hotels, Resorts & Cruise Lines
Carnival Corporation 15,714.0 9 7 Y 65 11 75 6 110,000 b 295,068 45% 54% 0% 1%
Marriott International 14,486.0 11 8 Y 63 8 72 7 75,000 b,c 238,329 39% 59% 0% 2%
Royal Caribbean Cruises Ltd. 8,299.0 12 10 N 63 9 - 7 80,000 b 232,247 46% 51% 0% 3%
Wyndham Worldwide Corporation 5,536.0 7 6 N 66 15 75 5 210,000 b,c,d 478,586 28% 49% 0% 23%
Household Appliances
Whirlpool Corporation 20,891.0 11 9 N 61 8 72 7 125,000 b 258,806 52% 48% 0% 0%
Internet Retail
Amazon.com 107,006.0 10 9 N 66 10 - 4 265,000 d,g 265,000 0% 100% 0% 0%
NetFlix 6,779.5 9 8 N 57 9 - 5 - e,g,j 266,364 0% 0% 100% 0%
The Priceline Group 9,224.0 10 9 N 60 8 - 8 50,000 b 345,055 22% 78% 0% 0%
TripAdvisor 1,492.0 8 6 Y 47 4 - 8 50,000 b,c 67,857 100% 0% 0% 0%
Leisure Products
Hasbro 4,447.5 12 11 N 61 11 72 8 95,000 b,c 324,931 20% 61% 0% 19%
Mattel 5,702.6 10 9 N 60 8 73 8 100,000 b 272,744 44% 48% 0% 8%
Motorcycle Manufacturers
Harley-Davidson 5,995.4 9 7 Y 62 12 75 5 100,000 b,c 247,000 49% 51% 0% 0%
board index 2016 43

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Movies & Entertainment
Time Warner 28,118.0 11 10 N 65 10 75 7 145,000 b,c,e 289,996 43% 34% 23% 0%
Twenty-First Century Fox 28,987.0 13 8 Y 55 6 - 6 270,000 d,f 294,714 42% 58% 0% 0%
Viacom 13,268.0 11 6 Y 61 11 - 6 100,000 b,c 313,648 44% 56% 0% 0%
The Walt Disney Company 52,465.0 11 9 N 61 9 - 6 105,000 b,c 324,868 40% 55% 0% 5%
Publishing
News Corporation 8,633.0 12 7 Y 52 3 - 9 225,000 d,f 241,278 48% 52% 0% 0%
Restaurants
Chipotle Mexican Grill 4,501.2 9 7 N 62 13 - 5 195,000 d 221,217 47% 53% 0% 0%
Darden Restaurants 6,764.0 12 11 Y 56 2 73 19 75,000 b,c,i 210,277 29% 54% 17% 0%
McDonald's Corporation 25,413.0 12 11 Y 62 10 - 10 100,000 b,c 244,214 45% 51% 0% 4%
Starbucks Corporation 19,162.7 12 10 N 60 11 75 7 240,000 c,i 205,424 6% 63% 31% 0%
Yum! Brands 13,105.0 12 11 Y 58 6 72 10 240,000 b,d,e,g,h n/a n/a n/a n/a n/a
Specialized Consumer Services
H&R Block 3,078.7 10 9 Y 62 7 - 8 190,000 d,f 250,609 35% 63% 0% 2%
Specialty Stores
Signet Jewelers Limited 6,550.2 10 9 Y 66 7 75 7 245,000 d 293,507 46% 54% 0% 0%
Staples 21,059.0 11 10 N 58 6 72 14 75,000 b 292,962 25% 75% 0% 0%
Tiffany & Co. 4,104.9 10 7 Y 69 14 74 6 80,000 b,e 159,099 0% 50% 50% 0%
Tractor Supply Co. 6,226.5 8 7 Y 63 7 72 5 75,000 b 214,815 49% 51% 0% 0%
ULTA Salon, Cosmetics & Fragrance 3,924.1 11 10 Y 62 7 - 6 200,000 d 215,951 49% 51% 0% 0%
Tires & Rubber
The Goodyear Tire & Rubber Company 16,443.0 13 11 N 63 6 72 8 121,250 b,c 257,779 52% 48% 0% 0%
TOTAL CONSUMER DISCRETIONARY
Average 10.5 8.7 62.0 8.8 73.3 7.4 128,007 257,811 38% 56% 4% 2%
Median 10.5 9.0 62.3 8.4 72.0 7.0 100,000 250,609
CONSUMER STAPLES
Agricultural Products
Archer-Daniels-Midland Company 67,702.0 12 11 N 60 8 75 8 275,000 c,d 272,455 32% 67% 0% 1%
Brewers
Molson Coors Brewing Company 3,567.5 14 9 Y 60 6 70 9 100,000 b,c 271,079 40% 46% 0% 14%
Distillers & Vintners
Brown-Forman Corporation 4,011.0 13 6 Y 61 6 71 7 175,000 c,d,f 218,072 45% 55% 0% 0%
Constellation Brands 7,223.8 9 7 Y 60 12 70 5 70,000 b,e 221,404 45% 32% 23% 0%
Drug Retail
CVS Health Corporation 153,290.0 11 10 Y 64 6 74 8 280,000 c,d 329,208 25% 74% 0% 1%
Walgreens Boots Alliance 103,444.0 11 8 Y 60 6 75 9 95,000 b,c 305,997 33% 57% 0% 10%
Food Distributors
Sysco Corporation 48,680.8 12 10 Y 67 10 - 14 100,000 b,c 354,849 46% 52% 0% 2%
Food Retail
The Kroger Co. 109,830.0 11 10 N 63 11 72 5 85,000 b 265,317 38% 62% 0% 0%
Whole Foods Market 15,389.0 11 9 Y 63 12 - 7 39,780 b,e 351,047 25% 34% 40% 1%
44
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Household Products
Church & Dwight Co. 3,394.8 10 8 Y 59 9 72 6 100,000 d,e,g,h 226,750 9% 38% 53% 0%
The Clorox Company 5,655.0 11 10 Y 64 7 72 7 100,000 b,c 235,835 45% 55% 0% 0%
Colgate-Palmolive Company 16,034.0 10 9 N 62 9 72 9 55,000 b,c,e,h 280,337 25% 58% 16% 1%
Kimberly-Clark Corporation 18,591.0 11 10 N 65 12 72 6 100,000 b 275,100 35% 63% 0% 2%
The Procter & Gamble Company 76,279.0 13 11 Y 62 7 72 8 110,000 b,c 295,500 41% 59% 0% 0%
Hypermarkets & Super Centers
Costco Wholesale Corporation 116,199.0 13 7 Y 68 12 - 5 30,000 b 343,577 11% 89% 0% 0%
Wal-Mart Stores 482,130.0 12 8 Y 56 5 75 6 90,000 b,c 297,804 38% 61% 0% 1%
Packaged Foods & Meats
Campbell Soup Company 8,082.0 12 11 Y 64 13 72 7 231,000 c,d 275,423 50% 50% 0% 0%
ConAgra Foods 15,832.4 12 11 Y 64 8 72 9 90,000 b 264,393 34% 63% 0% 3%
General Mills 17,630.3 11 10 N 65 11 74 7 75,000 b,c 290,129 27% 62% 0% 11%
The Hershey Company 7,386.6 11 10 N 64 7 72 10 100,000 b,c 241,111 44% 56% 0% 0%
Hormel Foods Corporation 9,263.9 15 12 N 60 7 72 8 70,000 b,c 250,827 34% 64% 0% 2%
The J.M. Smucker Company 7,811.2 13 8 Y 63 11 72 11 85,000 b 212,833 44% 56% 0% 0%
Kellogg Company 13,525.0 12 10 N 60 6 72 10 250,000 c,d 265,921 42% 58% 0% 0%
The Kraft Heinz Company 18,338.0 10 9 Y 62 2 - 6 110,000 b n/a n/a n/a n/a n/a
McCormick & Company 4,296.3 11 8 Y 60 9 72 10 90,000 b,e 262,278 38% 38% 24% 0%
Mead Johnson Nutrition Company 4,071.3 13 10 Y 63 6 75 11 50,000 b 315,359 40% 60% 0% 0%
Mondelez International 29,636.0 13 12 N 65 5 75 8 110,000 b 279,716 43% 57% 0% 0%
Tyson Foods 41,373.0 9 7 Y 61 8 72 6 100,000 b,c 283,229 47% 53% 0% 0%
Personal Products
The Estee Lauder Companies 10,780.4 15 9 Y 61 11 - 6 150,000 b,d,e 265,181 35% 27% 38% 0%
Soft Drinks
The Coca-Cola Company 44,294.0 15 13 N 65 8 74 6 250,000 c,d,f 265,985 22% 75% 0% 3%
Coca-Cola Enterprises 7,011.0 11 10 N 62 9 72 13 230,000 d 243,233 50% 49% 0% 1%
Dr Pepper Snapple Group 6,282.0 8 7 Y 62 6 70 6 100,000 b,c 249,375 40% 60% 0% 0%
Monster Beverage Corporation 2,722.6 10 6 N 69 18 - 7 205,000 d,e 223,469 35% 65% 0% 0%
PepsiCo 63,056.0 14 13 N 61 5 72 7 275,000 c,d 320,707 35% 64% 0% 1%
Tobacco
Altria Group 25,434.0 11 10 N 66 8 75 9 100,000 b,c 315,817 39% 55% 0% 6%
Phillip Morris International 73,908.0 12 9 Y 66 5 - 6 125,000 b,c 345,935 48% 52% 0% 0%
Reynolds American 10,675.0 13 9 Y 63 8 72 12 60,000 b,c 497,065 31% 69% 0% 0%
TOTAL CONSUMER STAPLES
Average 11.8 9.4 62.6 8.2 72.6 7.9 125,967 284,354 36% 58% 4% 2%
Median 12.0 10.0 62.7 7.6 72.0 7.0 100,000 273,777
ENERGY
Integrated Oil & Gas
Chevron Corporation 129,925.0 11 10 N 63 6 72 6 150,000 b,c,i 399,678 33% 58% 7% 2%
Exxon Mobil Corporation 259,488.0 14 12 N 65 7 72 11 110,000 b 344,415 33% 67% 0% 0%
Occidental Petroleum Corporation 12,480.0 11 9 Y 65 7 75 6 125,000 b 428,990 30% 60% 0% 10%
board index 2016 45

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Oil & Gas Drilling
Diamond Offshore Drilling 2,419.0 11 6 Y 71 11 - 7 50,000 e 149,190 42% 0% 58% 0%
Helmerich & Payne 3,165.4 10 8 Y 67 14 - 4 80,000 c,e 236,607 37% 0% 63% 0%
Transocean Ltd. 7,386.0 11 10 Y 60 6 72 7 100,000 b 385,112 33% 62% 0% 5%
Oil & Gas Equipment & Services
Baker Hughes 15,742.0 13 12 N 68 11 74 9 100,000 b,i 292,423 40% 59% 0% 1%
FMC Technologies 6,362.7 12 11 N 65 8 73 9 60,000 b,c 342,363 20% 79% 0% 1%
Halliburton Company 23,633.0 12 10 N 64 9 72 6 115,000 b,c 413,134 30% 43% 0% 27%
National Oilwell Varco 14,757.0 9 8 N 63 9 72 6 75,000 b,e 283,668 38% 62% 0% 0%
Schlumberger Limited 35,475.0 10 9 N 63 7 70 5 100,000 b 332,595 36% 64% 0% 0%
Oil & Gas Exploration & Production
Anadarko Petroleum Corporation 9,486.0 11 10 N 59 7 72 7 110,000 b,c 375,674 33% 66% 0% 1%
Apache Corporation 6,383.0 11 10 Y 60 7 75 16 300,000 c,d,f 316,021 35% 64% 0% 1%
Cabot Oil & Gas Corporation 1,357.2 6 5 N 64 5 73 6 75,000 b 297,183 30% 67% 0% 3%
Chesapeake Energy Corporation 12,764.0 9 8 Y 62 4 80 15 100,000 b,c 390,017 26% 74% 0% 0%
Cimarex Energy Co. 1,452.6 10 8 N 70 10 - 5 255,000 d 290,146 37% 62% 0% 1%
Concho Resources 18,035.6 8 5 N 64 6 - 9 50,000 b 289,124 34% 66% 0% 0%
ConocoPhillips 29,564.0 11 10 N 62 6 72 5 115,000 b,c 360,082 37% 61% 0% 2%
Devon Energy Corporation 13,145.0 9 7 Y 64 7 73 7 70,000 b 344,206 33% 67% 0% 0%
EOG Resources 8,757.0 7 6 N 71 12 80 8 140,000 b 344,796 41% 41% 0% 18%
EQT Corporation 1,954.0 10 9 N 65 11 74 6 60,000 b,c 322,529 28% 55% 0% 17%
Hess Corporation 6,636.0 11 10 Y 65 6 75 8 110,000 b 323,449 46% 54% 0% 0%
Marathon Oil Corporation 5,596.0 8 7 Y 63 7 72 8 150,000 b 359,124 50% 49% 0% 1%
Murphy Oil Corporation 2,787.1 12 10 Y 63 11 72 6 60,000 b 314,314 34% 64% 0% 2%
Newfield Exploration Company 1,557.0 9 8 N 62 8 72 5 75,000 b 291,194 31% 69% 0% 0%
Noble Energy 3,133.0 11 10 N 64 12 75 17 75,000 b,e 289,773 45% 28% 27% 0%
Pioneer Natural Resources Company 3,142.0 13 11 N 61 5 - 11 275,000 d 264,715 19% 80% 0% 1%
Range Resources Corporation 1,181.7 9 8 N 63 9 - 10 50,000 b,c 321,971 22% 78% 0% 0%
Southwestern Energy Company 3,133.0 8 7 Y 62 7 75 7 50,000 b,e 239,303 39% 40% 20% 1%
Oil & Gas Refining & Marketing
Marathon Petroleum Corporation 72,051.0 10 8 N 64 4 72 13 150,000 b 364,417 53% 46% 0% 1%
Phillips 66 98,975.0 8 7 N 65 4 75 8 125,000 b,c 321,361 43% 53% 0% 4%
Tesoro Corporation 28,711.0 10 9 N 67 7 75 11 270,000 c,d 309,557 45% 49% 0% 6%
Valero Energy Corporation 87,804.0 9 8 N 64 8 75 6 120,000 b 302,409 44% 56% 0% 0%
Oil & Gas Storage & Transportation
Kinder Morgan 14,403.0 15 12 Y 70 4 - 9 200,000 c 200,734 85% 15% 0% 0%
ONEOK 7,763.2 11 9 Y 62 8 73 17 200,000 c,d 204,950 30% 66% 0% 4%
Spectra Energy Corporation 5,234.0 11 10 N 65 7 74 12 225,000 d 238,511 48% 52% 0% 0%
TOTAL ENERGY
Average 10.3 8.8 64.3 7.7 73.7 8.6 124,306 313,712 37% 56% 3% 4%
Median 10.5 9.0 64.2 7.0 73.0 7.5 110,000 318,691
46
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
FINANCIALS
Asset Management & Custody Banks
Affiliated Managers Group 2,484.5 8 7 N 54 6 - 6 80,000 b,e 323,077 38% 25% 37% 0%
Ameriprise Financial 12,170.0 8 7 N 65 8 75 6 205,000 c,d 280,627 38% 45% 0% 17%
The Bank of New York Mellon
Corporation 15,494.0 11 10 N 64 12 75 17 110,000 b,c 286,122 53% 45% 0% 2%
BlackRock 11,401.0 19 16 N 65 6 75 7 75,000 b,c,d 266,400 44% 56% 0% 0%
Franklin Resources 7,948.7 10 7 N 60 5 75 6 85,000 b,c 217,938 34% 66% 0% 0%
Invesco 5,122.9 7 6 Y 67 8 75 13 120,000 b 310,459 53% 47% 0% 0%
Legg Mason 2,660.8 11 10 N 66 7 75 8 50,000 b,h 243,980 41% 58% 0% 1%
Northern Trust Corporation 4,856.5 12 11 N 59 8 72 9 220,000 c,d 232,267 52% 47% 0% 1%
State Street Corporation 10,760.0 11 10 N 63 10 75 8 75,000 b,c 314,300 35% 60% 0% 5%
T. Rowe Price Group 4,200.6 12 9 Y 64 6 72 7 100,000 b,c,e,k 354,106 35% 53% 9% 3%
Consumer Finance
American Express Company 34,441.0 13 12 N 63 7 72 10 95,000 b,c 310,508 41% 53% 0% 6%
Capital One Financial Corporation 25,038.0 11 10 N 62 9 72 13 90,000 b 336,417 45% 51% 0% 4%
Discover Financial Services 10,002.0 12 11 N 62 7 - 15 90,000 b 249,386 48% 52% 0% 0%
Navient Corporation 5,197.0 12 11 Y 62 9 75 10 100,000 b 237,036 56% 44% 0% 0%
Synchrony Financial 13,620.0 9 8 Y 61 1 75 14 160,000 d 271,424 59% 41% 0% 0%
Diversified Banks
Bank of America Corporation 93,056.0 13 12 N 65 5 72 21 100,000 b,c 329,732 35% 62% 0% 3%
Citigroup 88,275.0 16 14 Y 63 5 72 20 75,000 b,c 362,250 59% 41% 0% 0%
Comerica 2,834.0 9 8 N 59 12 72 8 50,000 b,c 178,328 52% 48% 0% 0%
JPMorgan Chase & Co. 101,006.0 11 10 N 65 9 72 11 75,000 b,c 353,000 28% 64% 0% 8%
U.S. Bancorp 21,494.0 14 13 N 60 9 72 8 90,000 b,c 258,845 46% 54% 0% 0%
Wells Fargo & Company 90,033.0 15 14 N 65 10 72 9 75,000 b,c 340,772 45% 55% 0% 0%
Healthcare REITs
HCP 2,544.3 8 7 Y 68 14 - 15 75,000 d,e 236,440 49% 51% 0% 0%
Ventas 3,283.9 9 8 N 61 7 75 8 90,000 d,e 236,742 45% 55% 0% 0%
Welltower 3,859.8 10 9 Y 65 9 75 4 75,000 d 228,776 45% 55% 0% 0%
Hotel & Resort REITs
Host Hotels & Resorts 5,387.0 9 7 Y 64 11 - 5 200,000 c,d 251,630 34% 46% 0% 20%
Industrial REITs
ProLogis 2,197.1 10 9 N 64 11 72 7 100,000 b 270,537 41% 55% 0% 4%
Insurance Brokers
Aon plc 11,682.0 11 10 Y 67 12 - 7 120,000 b,c 334,358 38% 53% 0% 9%
Marsh & McLennan Companies 12,893.0 11 10 Y 64 7 75 9 110,000 b,c 272,743 49% 51% 0% 0%
Willis Towers Watson Public
Limited Company 3,829.0 12 10 Y 62 8 - 11 230,000 d 251,651 48% 47% 0% 5%
Investment Banking & Brokerage
The Charles Schwab Corporation 6,380.0 15 13 Y 68 13 - 7 100,000 b,c,e,i 293,532 48% 28% 23% 1%
E*TRADE Financial Corporation 1,557.0 11 10 Y 66 5 - 13 50,000 b 249,824 51% 49% 0% 0%
The Goldman Sachs Group 39,208.0 13 10 N 62 6 75 14 75,000 b,d,g,h 607,633 5% 90% 0% 5%
Morgan Stanley 37,897.0 14 13 N 63 5 72 16 75,000 b,c 351,072 28% 71% 0% 1%
board index 2016 47

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Life & Health Insurance
AFLAC 20,872.0 13 8 N 67 13 75 4 115,000 b,c,e,i,k 268,458 48% 47% 5% 0%
Lincoln National Corporation 13,572.0 10 9 Y 69 13 75 4 247,000 c,d,f 283,675 32% 64% 0% 4%
MetLife 69,951.0 12 11 N 63 7 72 8 300,000 d 281,408 52% 47% 0% 1%
Principal Financial Group 11,964.4 10 9 N 63 11 72 10 225,000 c,d 262,001 50% 50% 0% 0%
Prudential Financial 57,119.0 13 11 N 62 7 74 10 300,000 c,d 322,963 54% 46% 0% 0%
Torchmark Corporation 3,766.1 11 9 N 66 12 74 4 210,000 c,d,i 223,792 42% 36% 22% 0%
Unum Group 10,731.3 13 11 Y 61 6 72 9 110,000 b,c 253,452 43% 56% 0% 1%
Multi-line Insurance
American International Group 58,327.0 16 15 Y 63 5 75 14 280,000 c,d,f 317,805 59% 41% 0% 0%
Assurant 10,325.5 10 9 Y 65 8 75 10 100,000 b,c 222,251 55% 45% 0% 0%
The Hartford Financial Services Group 18,377.0 11 10 N 62 8 75 7 100,000 b,c 280,880 23% 76% 0% 1%
Loews Corporation 13,415.0 14 11 Y 69 11 - 9 100,000 b 177,132 65% 0% 35% 0%
Multi-sector Holdings
Berkshire Hathaway 210,821.0 12 8 N 68 12 - 3 - - 4,170 100% 0% 0% 0%
Leucadia National Corporation 10,886.5 11 8 Y 66 4 - 7 115,000 b 240,000 50% 50% 0% 0%
Office REITs
Boston Properties 2,490.8 11 9 Y 67 9 75 7 67,500 b,c 202,595 43% 57% 0% 0%
SL Green Realty Corporation 1,662.8 8 5 Y 69 13 - 4 50,000 b,c 381,300 25% 75% 0% 0%
Vornado Realty Trust 2,502.3 9 7 N 75 21 - 7 75,000 b 193,910 50% 50% 0% 0%
Property & Casualty Insurance
The Allstate Corporation 35,653.0 10 9 N 62 6 72 9 105,000 b,c 267,393 44% 56% 0% 0%
Chubb Limited 18,987.0 17 16 N 65 10 75 8 260,000 d 383,198 37% 54% 0% 9%
Cincinnati Financial Corporation 5,142.0 15 10 Y 60 12 73 4 80,000 d 187,382 51% 46% 0% 3%
The Progressive Corporation 20,853.8 9 8 N 62 9 80 8 250,000 d,g,h 270,566 0% 100% 0% 0%
The Travelers Companies 26,800.0 14 12 Y 66 11 74 5 125,000 b,c 302,913 45% 55% 0% 0%
XL Group 9,308.9 13 11 Y 68 7 - 7 105,000 b,c 288,528 48% 52% 0% 0%
Real Estate Services
CBRE Group 10,855.8 10 9 Y 62 7 - 5 75,000 b,c 235,350 36% 64% 0% 0%
Regional Banks
BB&T Corporation 10,346.0 18 16 N 65 5 72 10 60,000 b 196,512 50% 50% 0% 0%
Citizens Financial Group 5,276.0 12 11 N 66 6 75 11 175,000 d 179,027 49% 50% 0% 1%
Fifth Third Bancorp 7,031.0 11 10 Y 61 6 70 13 50,000 b 289,696 56% 40% 0% 4%
Huntington Bancshares 3,153.3 11 9 N 62 8 - 15 35,000 b,c 221,725 50% 50% 0% 0%
KeyCorp 4,502.0 14 13 N 60 6 72 11 70,000 b,c 181,500 50% 50% 0% 0%
M&T Bank Corporation 5,010.1 16 12 N 72 16 - 12 85,000 c 169,040 45% 55% 0% 0%
People's United Financial 1,378.7 12 9 Y 68 13 76 12 24,000 b,c 181,294 47% 53% 0% 0%
The PNC Financial Services Group 16,270.0 13 12 N 63 8 72 10 67,500 b,c 312,790 37% 44% 0% 19%
Regions Financial Corporation 5,674.0 11 10 N 65 9 72 9 165,000 c,d 214,682 51% 49% 0% 0%
SunTrust Banks 8,533.0 11 10 N 62 5 72 6 70,000 b 231,659 46% 52% 0% 2%
Zions Bancorporation 2,210.6 11 9 N 63 12 72 13 40,000 b,c 157,152 52% 48% 0% 0%
Residential REITs
Apartment Investment and
Management Company 981.3 8 7 N 66 11 - 5 25,000 b 209,217 12% 88% 0% 0%
AvalonBay Communities 1,856.0 9 8 N 63 7 72 5 70,000 b,c 207,585 23% 77% 0% 0%
48
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Residential REITs (continued)
Equity Residential 2,745.0 13 11 Y 61 11 72 7 180,000 d,e,i 207,777 40% 57% 3% 0%
Essex Property Trust 1,194.4 9 7 Y 67 11 - 6 30,000 e,k 102,545 43% 14% 43% 0%
UDR 894.6 10 9 Y 67 10 - 8 80,000 b,c 207,557 34% 64% 0% 2%
Retail REITs
Federal Realty Investment Trust 744.0 7 6 Y 62 13 72 5 175,000 d 195,329 42% 57% 0% 1%
General Growth Properties 2,403.9 9 8 Y 56 5 - 8 200,000 c,d 180,002 40% 60% 0% 0%
Kimco Realty Corporation 1,166.8 8 6 Y 74 16 - 5 60,000 b,c 288,599 39% 61% 0% 0%
The Macerich Co. 1,288.1 10 7 N 62 7 75 12 60,000 b,c 207,906 47% 53% 0% 0%
Realty Income Corporation 1,023.3 8 7 Y 63 10 - 17 15,000 b 235,516 20% 80% 0% 0%
Simon Property Group 5,266.1 11 8 N 66 8 - 8 100,000 b 273,624 42% 58% 0% 0%
Specialized Finance
Intercontinental Exchange 3,338.0 8 7 N 64 11 75 9 85,000 b,c 356,845 31% 53% 0% 16%
Moody's Corporation 3,484.5 9 8 Y 64 8 - 11 90,000 b 267,464 39% 60% 0% 1%
Nasdaq 3,403.0 10 9 Y 58 6 - 20 80,000 b,c 262,200 37% 63% 0% 0%
S&P Global 5,313.0 10 9 Y 66 9 72 9 70,000 b 232,596 50% 50% 0% 0%
Specialized REITs
American Tower Corporation 4,771.5 10 9 N 64 9 - 11 85,000 b 251,203 36% 32% 32% 0%
Crown Castle International Corp. 3,663.9 12 10 Y 64 12 - 8 75,000 b 214,489 38% 62% 0% 0%
Equinix 2,725.9 10 8 Y 61 7 75 18 60,000 b 339,259 26% 74% 0% 0%
Extra Space Storage 782.3 7 4 Y 67 7 - 7 65,000 b 169,063 50% 50% 0% 0%
Public Storage 2,381.7 8 5 N 65 12 70 5 120,000 e 206,507 66% 34% 0% 0%
Weyerhaeuser Company 7,082.0 13 11 Y 61 10 72 6 220,000 c,d 244,791 48% 52% 0% 0%
TOTAL FINANCIALS
Average 11.2 9.6 64.0 8.9 73.5 9.3 110,356 258,712 42% 54% 2% 2%
Median 11.0 9.0 63.7 8.5 73.0 8.0 90,000 262,200
HEALTHCARE
Biotechnology
AbbVie 22,859.0 9 8 N 61 3 75 10 126,000 b,c,i 294,290 46% 49% 0% 5%
Alexion Pharmaceuticals 2,604.0 11 9 Y 64 6 - 5 95,000 b,e 343,554 34% 32% 34% 0%
Amgen 21,622.0 13 12 N 66 8 72 6 100,000 b 332,314 40% 60% 0% 0%
Biogen Idec 10,763.8 11 10 Y 61 10 75 16 65,000 b 438,862 33% 65% 0% 2%
Celgene Corporation 9,256.0 12 9 Y 67 8 - 8 75,000 b,e 574,365 19% 20% 61% 0%
Gilead Sciences 32,639.0 9 7 Y 70 10 - 5 75,000 b,c,e 422,148 28% 36% 36% 0%
Regeneron Pharmaceuticals 4,103.7 10 7 Y 68 18 - 7 55,000 e 2,061,048 4% 0% 96% 0%
Vertex Pharmaceuticals 1,032.3 9 8 N 59 10 - 7 85,000 b,e 1,320,797 5% 95% 0% 0%
Health Care Technology
Cerner Corporation 4,425.3 9 7 N 70 11 75 4 66,000 b 337,035 25% 75% 0% 0%
Healthcare Distributors
AmerisourceBergen Corporation 135,961.8 10 8 N 62 7 75 4 100,000 b,c 243,750 46% 54% 0% 0%
Cardinal Health 102,531.0 11 10 N 63 6 75 10 100,000 b 260,773 37% 63% 0% 0%
Henry Schein 10,629.7 15 10 N 69 8 80 7 50,000 b 260,650 29% 71% 0% 0%
McKesson Corporation 190,884.0 11 10 N 66 10 75 7 75,000 b 270,827 42% 58% 0% 0%
board index 2016 49

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Healthcare Distributors (continued)
Patterson Companies 4,375.0 8 7 N 60 8 75 14 90,000 b 171,468 40% 60% 0% 0%
Healthcare Equipment
Abbott Laboratories 20,405.0 11 10 N 64 8 75 6 126,000 b 282,404 47% 48% 0% 5%
Baxter International 9,968.0 12 11 N 65 9 72 12 65,000 b,e 317,912 42% 36% 17% 5%
Becton, Dickinson and Company 10,282.0 12 11 N 65 10 72 6 92,000 b,c 288,927 33% 66% 0% 1%
Boston Scientific Corporation 7,477.0 10 9 N 57 3 - 5 90,000 b,c,i 292,455 35% 57% 6% 2%
C.R. Bard 3,416.0 12 10 N 66 11 74 6 62,500 b,c 279,313 34% 36% 0% 30%
Edwards Lifesciences Corporation 2,493.7 8 7 N 65 4 75 8 40,000 b,c,e,i 291,919 14% 75% 11% 0%
Hologic 2,705.0 10 9 N 58 6 72 6 60,000 b,e 257,900 30% 35% 35% 0%
Intuitive Surgical 2,384.4 9 7 Y 63 7 - 5 60,000 b,e 425,083 17% 60% 23% 0%
Medtronic 20,261.0 13 12 N 61 8 72 13 175,000 b 236,219 52% 48% 0% 0%
St. Jude Medical 5,541.0 10 8 Y 62 10 75 7 100,000 b,c 271,004 37% 63% 0% 0%
Stryker Corporation 9,946.0 9 8 N 60 16 - 9 60,000 b,e 304,265 44% 29% 27% 0%
Varian Medical Systems 3,099.1 10 8 Y 61 8 75 8 100,000 b,c 297,007 46% 54% 0% 0%
Zimmer Biomet Holdings 5,997.8 12 11 Y 58 6 72 5 95,000 b,c,d,f 308,686 31% 67% 0% 2%
Healthcare Facilities
HCA Holdings 39,678.0 12 8 N 65 3 75 6 100,000 b 302,906 42% 58% 0% 0%
Universal Health Services 9,043.5 7 4 N 61 14 - 6 40,000 e 375,655 15% 0% 85% 0%
Healthcare Services
DaVita Healthcare Partners 13,781.8 10 9 N 63 11 75 9 80,000 b,e 315,042 47% 30% 23% 0%
Express Scripts Holding Co. 101,751.8 12 10 Y 63 9 75 7 100,000 b,e 287,450 30% 35% 35% 0%
Laboratory Corporation of
America Holdings 8,505.7 10 9 N 58 8 75 6 100,000 b 253,672 41% 59% 0% 0%
Quest Diagnostics 7,493.0 10 9 Y 65 10 - 9 96,500 b,c,i 270,515 35% 65% 0% 0%
Healthcare Supplies
DENTSPLY Sirona 2,674.3 11 9 Y 65 12 75 9 70,000 b,c,e 234,889 36% 32% 32% 0%
Life Sciences Tools & Services
Agilent Technologies 4,038.0 10 9 Y 66 9 75 12 90,000 b,c 298,842 39% 61% 0% 0%
Illumina 2,219.8 8 6 N 62 8 - 8 55,000 b,c 484,271 17% 83% 0% 0%
PerkinElmer 2,262.4 8 7 N 64 11 72 7 90,000 b 264,310 34% 60% 6% 0%
Thermo Fisher Scientific 16,965.4 10 8 Y 62 8 72 13 100,000 b,c 293,300 44% 51% 0% 5%
Waters Corporation 2,042.3 10 8 Y 62 18 72 7 55,000 b,c,e 335,729 27% 41% 32% 0%
Managed Healthcare
Aetna 60,336.5 12 11 N 68 12 76 17 95,000 b,c 311,359 34% 51% 0% 15%
Anthem 79,156.5 9 8 N 65 8 72 23 95,000 b 347,224 45% 50% 0% 5%
Centene Corporation 22,760.0 8 7 N 69 12 - 17 125,000 b,c,e 361,574 5% 90% 0% 5%
CIGNA Corporation 37,876.0 11 10 Y 62 9 72 25 275,000 c,d 319,408 43% 56% 0% 1%
Humana 54,289.0 10 9 Y 59 11 73 21 105,000 b,c 312,907 43% 50% 0% 7%
UnitedHealth Group 157,107.0 10 8 Y 70 15 - 10 125,000 b,c 345,628 50% 45% 0% 5%
Pharmaceuticals
Allergan plc 15,071.0 12 10 Y 64 7 - 15 125,000 b 455,062 45% 55% 0% 0%
Bristol-Myers Squibb Company 16,560.0 11 9 Y 62 7 75 7 90,000 b,c 302,451 41% 53% 0% 6%
Eli Lilly & Company 19,958.7 14 13 N 62 10 72 9 110,000 b,c 283,467 45% 52% 0% 3%
Endo International plc 3,268.7 9 8 Y 63 8 - 9 140,000 b,c 525,714 43% 57% 0% 0%
50
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Pharmaceuticals (continued)
Johnson & Johnson 70,074.0 11 10 N 64 6 72 10 110,000 b 292,914 42% 53% 0% 5%
Mallinckrodt Public Limited Company 3,346.9 11 10 Y 63 3 72 9 100,000 b 353,150 33% 67% 0% 0%
Merck & Co. 39,498.0 13 12 N 63 9 72 8 110,000 b,c 273,490 41% 59% 0% 0%
Perrigo Company Public
Limited Company 4,603.9 10 8 N 63 13 72 11 75,000 b 431,243 30% 70% 0% 0%
Pfizer 48,851.0 11 10 N 64 7 73 13 137,500 b,c 333,733 47% 49% 0% 4%
Zoetis 4,765.0 11 9 Y 63 2 - 14 270,000 d,f 283,889 40% 60% 0% 0%
TOTAL HEALTHCARE
Average 10.5 8.9 63.5 8.9 73.8 9.5 97,209 369,080 31% 51% 17% 1%
Median 10.0 9.0 63.2 8.4 75.0 8.0 95,000 297,007
INDUSTRIALS
Aerospace & Defense
The Boeing Company 96,114.0 12 11 N 63 7 74 7 130,000 b,c 329,352 43% 50% 0% 7%
General Dynamics Corporation 31,469.0 12 10 N 64 9 75 8 70,000 b,c,e 278,413 48% 26% 25% 1%
Honeywell International 38,581.0 12 11 N 63 8 72 7 100,000 b,c,e 315,669 61% 16% 16% 7%
L-3 Communications Holdings 10,466.0 10 9 N 70 8 - 10 110,000 b,c 255,136 50% 47% 0% 3%
Lockheed Martin Corporation 46,132.0 11 10 N 66 9 75 10 290,000 c,d 285,956 53% 45% 0% 2%
Northrop Grumman Corporation 23,526.0 13 12 N 66 6 72 9 262,500 c,d,f 289,069 48% 48% 0% 4%
Raytheon Company 23,247.0 10 9 N 63 7 74 9 90,000 b,c 316,223 51% 47% 0% 2%
Rockwell Collins 5,244.0 9 8 N 67 10 74 6 100,000 b,c 263,713 44% 54% 0% 2%
Textron 13,423.0 11 10 N 69 12 75 6 235,000 c,d,f 248,900 58% 40% 0% 2%
United Technologies Corporation 56,098.0 13 12 Y 68 10 72 10 280,000 c,d,f 296,764 23% 76% 0% 1%
Agricultural and Farm Machinery
Deere & Company 28,863.0 11 10 N 62 6 72 5 120,000 b,c 249,443 50% 49% 0% 1%
Air Freight & Logistics
C.H. Robinson Worldwide 13.476.1 9 8 N 62 10 - 5 80,000 b,c 219,375 43% 57% 0% 0%
Expeditors International of
Washington 6,616.6 11 9 Y 63 7 72 6 65,000 b 266,812 25% 75% 0% 0%
FedEx Corporation 47,453.0 12 11 N 58 10 75 9 111,000 e 264,301 45% 55% 0% 0%
United Parcel Service 58,363.0 11 10 N 61 8 75 8 100,000 b 242,202 40% 60% 0% 0%
Airlines
Alaska Air Group 5,598.0 11 10 N 60 9 72 10 150,000 c,d 135,427 37% 55% 0% 8%
American Airlines Group 40,990.0 13 12 N 62 3 75 6 100,000 b 287,542 42% 49% 0% 9%
Delta Air Lines 40,704.0 14 11 Y 62 5 72 12 90,000 b 301,522 38% 57% 0% 5%
Southwest Airlines Co. 19,820.0 11 9 N 67 8 75 6 70,000 b 244,329 47% 53% 0% 0%
United Continental Holdings 37,864.0 14 11 Y 60 4 75 11 85,000 b 312,903 52% 41% 0% 7%
Building Products
Allegion Public Limited Company 2,068.1 6 5 N 62 3 70 5 140,000 b 273,704 68% 26% 0% 6%
Masco Corporation 7,142.0 10 8 Y 60 7 72 7 240,000 d 255,631 52% 48% 0% 0%
Construction & Engineering
Fluor Corporation 18,114.0 11 10 N 65 9 75 6 115,000 b 261,167 47% 52% 0% 1%
Jacobs Engineering Group 12,114.8 11 9 Y 66 9 - 9 88,000 b,e 203,649 43% 33% 24% 0%
Quanta Services 7,572.4 10 9 Y 60 8 73 13 75,000 b 268,909 42% 58% 0% 0%
board index 2016 51

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Construction Machinery & Heavy Trucks
Caterpillar 47,011.0 12 11 N 61 8 72 7 275,000 c,d 276,723 50% 46% 0% 4%
Cummins 19,110.0 10 9 N 63 9 72 5 250,000 d 270,131 41% 57% 0% 2%
PACCAR 19,115.1 11 8 Y 62 6 72 4 100,000 b,c 255,270 49% 51% 0% 0%
Diversified Support Services
Cintas Corporation 4,476.9 9 6 Y 64 7 73 4 55,000 b,c,e 182,765 46% 27% 27% 0%
Iron Mountain 3,008.0 12 11 Y 61 7 75 13 75,000 b,c 242,437 44% 56% 0% 0%
Electrical Components & Equipment
Acuity Brands 2,706.7 10 9 N 67 9 72 5 205,000 c,d,f 183,333 45% 55% 0% 0%
AMETEK 3,974.3 8 7 N 65 12 75 7 90,000 b,c,e 213,384 45% 29% 26% 0%
Eaton Corporation 20,855.0 13 11 N 64 10 72 5 265,000 c,d 334,511 48% 43% 0% 9%
Emerson Electric Company 22,304.0 11 10 N 63 8 72 10 240,000 d 282,558 47% 50% 0% 3%
Rockwell Automation 6,307.9 9 8 N 61 9 72 6 165,000 b,c,d 219,902 44% 52% 0% 4%
Environmental & Facilities Services
Republic Services 9,115.0 10 9 Y 62 8 73 6 80,000 b 409,571 26% 74% 0% 0%
Stericycle 2,985.9 10 8 Y 67 10 - 8 125,000 e,g,h 130,904 0% 0% 100% 0%
Waste Management 12,961.0 10 9 Y 65 9 75 7 110,000 b 282,500 46% 54% 0% 0%
Human Resource & Employment Services
Robert Half International 5,094.9 7 5 N 64 12 - 5 40,000 b 344,361 19% 81% 0% 0%
Industrial Conglomerates
3M Company 30,274.0 12 11 N 65 6 74 8 280,000 c,d 293,479 45% 54% 0% 1%
Danaher Corporation 20,563.1 10 7 Y 66 17 72 8 110,000 b,c,e 265,567 30% 43% 27% 0%
General Electric Company 117,386.0 16 15 N 60 8 75 13 250,000 c,d,f 306,201 21% 72% 0% 7%
Roper Technologies 3,582.4 9 8 N 65 12 78 6 42,500 b 751,973 7% 93% 0% 0%
Industrial Machinery
Dover Corporation 6,956.3 11 10 Y 66 10 75 12 240,000 d 256,591 52% 48% 0% 0%
Flowserve Corporation 4,561.0 10 9 Y 61 8 72 12 60,000 b,c 223,221 44% 56% 0% 0%
Illinois Tool Works 13,405.0 11 10 N 60 8 75 5 135,000 b,c 272,781 54% 46% 0% 0%
Ingersoll-Rand 13,300.7 12 11 N 67 10 75 6 285,000 d 281,874 49% 51% 0% 0%
Parker-Hannifin Corporation 12,711.7 14 11 Y 63 12 75 7 120,000 b 257,729 49% 49% 0% 2%
Pentair Ltd. 6,449.0 11 10 N 61 9 75 5 123,000 b,e 290,134 53% 28% 19% 0%
Snap-on 3,593.1 9 8 N 62 7 75 8 85,000 b,c 246,545 39% 53% 0% 8%
Stanley Black & Decker 11,171.8 11 10 N 63 6 72 5 125,000 b,c 260,422 52% 48% 0% 0%
Xylem 3,653.0 10 9 Y 63 5 72 7 100,000 b,c 240,906 47% 53% 0% 0%
Office Services & Supplies
Pitney Bowes 3,578.1 11 10 Y 65 11 72 8 75,000 b 216,408 52% 46% 0% 2%
Railroads
CSX Corporation 11,811.0 12 11 N 65 9 75 6 90,000 b,c 290,967 34% 52% 0% 14%
Kansas City Southern 2,418.8 9 8 Y 64 9 75 5 50,000 b,c 215,000 48% 42% 0% 10%
Union Pacific Corporation 21,813.0 11 10 N 68 9 75 6 250,000 c,d,f 282,930 93% 0% 0% 7%
Research & Consulting Services
The Dun & Bradstreet Corporation 1,637.1 10 9 Y 56 5 72 9 70,000 b,c,e 229,709 41% 52% 0% 7%
Equifax 2,663.6 10 9 N 64 10 72 4 80,000 b,c 242,358 38% 62% 0% 0%
Nielsen Holdings plc 6,172.0 11 9 Y 61 5 - 5 80,000 b,c 229,209 12% 88% 0% 0%
Verisk Analytics 2,068.0 12 11 N 65 12 75 10 82,500 b,c,e,i 242,732 18% 41% 41% 0%
52
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Security & Alarm Services
Tyco International 9,902.0 11 9 Y 64 8 72 6 110,000 b 266,000 46% 53% 0% 1%
Trading Companies & Distributors
Fastenal Company 3,869.2 9 6 Y 54 6 74 4 55,000 - 113,167 100% 0% 0% 0%
United Rentals 5,817.0 11 10 Y 63 10 - 6 80,000 b 266,249 45% 55% 0% 0%
W.W. Grainger 9,973.4 10 9 N 63 13 75 7 85,000 b,c 243,327 38% 61% 0% 1%
Trucking
J.B. Hunt Transport Services 6,187.6 10 6 Y 59 9 72 4 200,000 c 195,140 39% 60% 0% 1%
Ryder System 6,571.9 11 10 N 62 9 72 6 65,000 b,c 240,311 46% 53% 0% 1%
TOTAL INDUSTRIALS
Average 10.8 9.4 63.2 8.4 73.5 7.3 131,811 267,205 43% 51% 3% 3%
Median 11.0 9.5 63.0 8.5 74.0 7.0 100,000 262,440
INFORMATION TECHNOLOGY
Application Software
Adobe Systems 4,795.5 11 10 N 60 9 72 10 150,000 c,d 349,484 25% 75% 0% 0%
Autodesk 2,504.1 10 9 N 63 9 72 5 250,000 d 347,753 25% 75% 0% 0%
Citrix Systems 3,275.6 13 11 N 64 10 72 5 265,000 c,d 412,369 36% 64% 0% 0%
Intuit 4,192.0 11 10 N 66 9 75 10 290,000 c,d 393,043 25% 75% 0% 0%
salesforce.com 6,667.2 11 10 N 63 6 72 5 125,000 b,c 600,604 11% 89% 0% 0%
Communications Equipment
Cisco Systems 49,161.0 11 10 Y 66 10 75 12 240,000 d 326,987 37% 63% 0% 0%
F5 Networks 1,919.8 10 9 Y 61 8 72 12 60,000 b,c 343,060 27% 73% 0% 0%
Harris Corporation 5,083.0 12 11 Y 61 7 75 13 75,000 b,c 250,045 47% 52% 0% 1%
Juniper Networks 4,857.8 10 8 Y 60 7 72 7 240,000 d 411,664 30% 70% 0% 0%
Motorola Solutions 5,695.0 10 9 N 63 7 74 9 90,000 b,c 245,839 33% 67% 0% 0%
Data Processing & Outsourced Services
Alliance Data Systems Corporation 6,439.7 13 12 N 62 3 75 6 100,000 b 253,581 27% 72% 0% 1%
Automatic Data Processing 10,938.5 10 7 Y 66 17 72 8 110,000 b,c,e 267,950 41% 55% 0% 4%
Fidelity National Information Services 6,595.2 12 10 N 64 9 75 8 70,000 b,c,e 337,683 59% 21% 20% 0%
Fiserv 5,254.0 12 11 N 63 8 72 7 100,000 b,c,e 268,588 36% 32% 32% 0%
Global Payments 2,773.7 12 11 N 67 10 75 6 285,000 d 248,125 42% 58% 0% 0%
MasterCard 9,667.0 14 11 Y 63 12 75 7 120,000 b 320,102 39% 60% 0% 1%
Paychex 2,739.6 9 8 N 67 10 74 6 100,000 b,c 228,648 52% 24% 24% 0%
PayPal Holdings 9,248.0 9 8 N 65 12 78 6 42,500 b n/a n/a n/a n/a n/a
Total System Services 2,779.5 11 10 N 61 8 75 8 100,000 b 221,524 42% 29% 29% 0%
Visa 13,880.0 13 12 Y 68 10 72 10 280,000 c,d,f 335,149 43% 54% 0% 3%
The Western Union Company 5,483.7 14 11 Y 60 4 75 11 85,000 b 258,200 40% 41% 16% 3%
Xerox Corporation 18,045.0 10 9 N 63 13 75 7 85,000 b,c 219,479 43% 57% 0% 0%
Electronic Components
Amphenol Corporation 5,568.7 9 8 N 62 10 - 5 80,000 b,c 208,611 40% 60% 0% 0%
Corning 9,111.0 10 9 N 64 10 72 4 80,000 b,c 285,619 50% 50% 0% 0%
Electronic Equipment & Instruments
FLIR Systems 1,557.1 11 10 N 60 8 75 5 135,000 b,c 245,870 40% 31% 29% 0%
board index 2016 53

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Electronic Manufacturing Services
TE Connectivity 12,233.0 10 9 Y 56 5 72 9 70,000 b,c,e 294,505 34% 59% 0% 7%
Home Entertainment Software
Activision Blizzard 4,664.0 10 9 N 67 9 72 5 205,000 c,d,f 363,620 31% 69% 0% 0%
Electronic Arts 4,396.0 9 6 Y 54 6 74 4 55,000 - 337,991 10% 38% 52% 0%
Internet Software & Services
Akamai Technologies 2,197.4 6 5 N 62 3 70 5 140,000 b 318,018 21% 79% 0% 0%
Alphabet 74,989.0 8 7 N 65 12 75 7 90,000 b,c,e 429,769 18% 82% 0% 0%
eBay 8,592.0 11 9 Y 63 7 72 6 65,000 b 297,465 26% 74% 0% 0%
Facebook 17,928.0 11 10 N 65 9 75 6 115,000 b 377,922 19% 81% 0% 0%
VeriSign 1,059.4 11 10 Y 63 10 - 6 80,000 b 342,945 25% 75% 0% 0%
IT Consulting & Other Services
Accenture 32,914.0 12 11 N 65 6 74 8 280,000 c,d 292,217 37% 63% 0% 0%
Cognizant Technology
Solutions Corporation 12,416.0 11 10 N 63 8 72 10 240,000 d 311,566 33% 34% 33% 0%
International Business
Machines Corporation 81,741.0 10 9 N 70 8 - 10 110,000 b,c 373,303 82% 0% 0% 18%
Teradata Corporation 2,530.0 11 9 Y 64 8 72 6 110,000 b 317,437 11% 89% 0% 0%
Semiconductor Equipment
Applied Materials 9,659.0 12 11 N 65 9 75 6 90,000 b,c 299,855 34% 66% 0% 0%
KLA-Tencor Corporation 2,814.0 11 9 Y 61 5 - 5 80,000 b,c 286,711 42% 58% 0% 0%
Lam Research Corporation 5,259.3 13 12 N 66 6 72 9 262,500 c,d,f 315,307 37% 60% 0% 3%
Semiconductors
Analog Devices 3,435.1 12 11 N 61 8 72 7 275,000 c,d 258,598 32% 34% 34% 0%
Broadcom Limited 6,824.0 11 10 N 62 6 72 5 120,000 b,c 176,086 44% 56% 0% 0%
First Solar 3,579.0 16 15 N 60 8 75 13 250,000 c,d,f 245,091 46% 54% 0% 0%
Intel Corporation 55,355.0 9 8 Y 64 9 75 5 50,000 b,c 313,089 29% 70% 0% 1%
Linear Technology Corporation 1,475.1 11 8 Y 62 6 72 4 100,000 b,c 214,190 38% 62% 0% 0%
Microchip Technology 2,173.3 11 10 N 61 9 75 5 123,000 b,e 155,295 49% 51% 0% 0%
Micron Technology 16,192.0 11 10 Y 65 11 72 8 75,000 b 380,733 34% 66% 0% 0%
Nvidia Corporation 5,010.0 7 5 N 64 12 - 5 40,000 b 285,904 26% 74% 0% 0%
Qorvo 2,610.7 11 10 N 62 9 72 6 65,000 b,c 227,266 39% 14% 47% 0%
QUALCOMM 25,281.0 9 8 N 62 7 75 8 85,000 b,c 378,343 40% 53% 0% 7%
Skyworks Solutions 3,258.4 11 10 N 69 12 75 6 235,000 c,d,f 267,763 31% 68% 0% 1%
Texas Instruments 13,000.0 11 10 N 68 9 75 6 250,000 c,d,f 297,094 32% 33% 34% 1%
Xilinx 2,213.9 10 9 Y 65 9 75 7 110,000 b 265,699 32% 68% 0% 0%
Systems Software
CA 4,025.0 14 11 Y 62 5 72 12 90,000 b 356,250 23% 73% 0% 4%
Microsoft Corporation 93,580.0 10 9 Y 60 8 73 13 75,000 b 228,583 41% 59% 0% 0%
Oracle Corporation 37,047.0 9 8 N 61 9 72 6 165,000 b,c,d 780,004 18% 44% 38% 0%
Red Hat 2,052.2 11 9 N 67 8 75 6 70,000 b 332,827 16% 84% 0% 0%
Symantec Corporation 6,508.0 12 11 N 63 7 74 7 130,000 b,c 326,879 28% 72% 0% 0%
Technology Hardware, Storage & Peripherals
Apple 233,715.0 9 6 Y 64 7 73 4 55,000 b,c,e 398,762 36% 63% 0% 1%
EMC Corporation 24,704.0 12 11 N 58 10 75 9 111,000 e 353,624 36% 64% 0% 0%
54
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Technology Hardware, Storage & Peripherals (continued)
Hewlett Packard Enterprise Company 52,107.0 11 9 Y 66 9 - 9 88,000 b,e n/a n/a n/a n/a n/a
HP 103,355.0 10 6 Y 59 9 72 4 200,000 c 311,030 23% 59% 16% 2%
NetApp 5,546.0 10 9 Y 62 8 73 6 80,000 b 337,171 27% 61% 12% 0%
Seagate Technology Public
Limited Company 13,739.0 10 8 Y 67 10 - 8 125,000 e,g,h 334,149 31% 69% 0% 0%
Western Digital Corporation 14,572.0 12 11 N 65 12 75 10 82,500 b,c,e,i 341,610 34% 66% 0% 0%
TOTAL INFORMATION TECHNOLOGY
Average 10.8 9.4 63.2 8.4 73.5 7.3 132,300 315,618 33% 59% 7% 1%
Median 11.0 10.0 63.0 8.6 74.0 7.0 100,000 313,089
MATERIALS
Aluminum
Alcoa 22,534.0 15 14 N 66 6 75 8 240,000 c 252,864 100% 0% 0% 0%
Construction Materials
Martin Marietta Materials 3,539.6 9 7 N 65 11 75 5 100,000 b,c 240,150 37% 42% 0% 21%
Vulcan Materials 3,422.2 11 10 N 62 7 74 5 110,000 b 290,724 46% 53% 0% 1%
Diversified Chemicals
The Dow Chemical Company 48,778.0 13 12 N 63 8 72 16 115,000 b 261,721 48% 52% 0% 0%
E.I. du Pont de Nemours & Company 25,103.0 11 10 N 61 7 72 29 265,000 d 275,598 45% 55% 0% 0%
Eastman Chemical Company 9,648.0 12 11 N 65 9 75 5 100,000 b,c 250,929 46% 30% 0% 24%
Diversified Metals and Mining
Freeport McMoRan 15,877.0 8 7 Y 58 6 - 11 75,000 b,c 420,529 34% 64% 0% 2%
Fertilizers & Agricultural Chemicals
CF Industries Holdings 4,308.3 10 9 Y 62 7 74 10 100,000 b 244,502 46% 53% 0% 1%
FMC Corporation 3,276.5 10 9 N 62 9 72 7 100,000 b,c 241,059 23% 72% 0% 5%
Monsanto Company 15,001.0 13 12 N 60 8 75 6 245,000 c,d,f 277,284 50% 50% 0% 0%
The Mosaic Company 8,895.3 11 9 Y 60 7 74 8 90,000 b,h 275,272 37% 60% 0% 3%
Gold
Newmont Mining Corporation 7,729.0 10 9 Y 63 7 75 9 115,000 b 336,358 55% 45% 0% 0%
Industrial Gases
Air Products & Chemicals 9,894.9 8 7 N 61 5 72 9 100,000 b,c 247,291 51% 49% 0% 0%
Praxair 10,776.0 11 10 N 66 9 72 6 100,000 b,c 266,050 41% 54% 0% 5%
Metal & Glass Containers
Ball Corporation 7,997.0 9 7 N 65 11 - 10 85,000 b 235,493 31% 49% 0% 20%
Owens-Illinois 6,156.0 12 11 Y 62 8 - 12 67,500 b,c 204,154 55% 45% 0% 0%
Paper Packaging
Avery Dennison Corporation 5,966.9 9 8 Y 61 9 72 5 100,000 b,c 232,479 42% 54% 0% 4%
International Paper Company 22,365.0 12 11 N 64 6 72 10 255,000 c,d 285,466 17% 81% 0% 2%
Sealed Air Corporation 7,031.5 10 9 Y 66 10 75 7 205,000 c,d 211,524 45% 55% 0% 0%
WestRock Company 11,381.3 14 12 Y 60 10 72 5 115,000 b n/a n/a n/a n/a n/a
Specialty Chemicals
Ecolab 13,545.1 15 14 N 60 7 72 6 105,000 b,c,e 269,064 43% 37% 20% 0%
International Flavors & Fragrances 3,023.2 11 10 N 64 6 72 5 225,000 d,f 234,596 51% 46% 0% 3%
board index 2016 55

Comparative Board Data
number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Specialty Chemicals (continued)
PPG Industries 15,330.0 10 8 Y 62 10 72 8 270,000 c,d 269,642 49% 47% 0% 4%
Steel
Nucor Corporation 16,439.3 8 7 N 62 7 72 4 95,000 b,c 247,533 43% 57% 0% 0%
TOTAL MATERIALS
Average 10.9 9.7 62.5 8.0 73.1 8.6 140,729 266,940 45% 50% 1% 4%
Median 11.0 9.5 62.2 7.7 72.0 7.5 102,500 252,864
TELECOMMUNICATION SERVICES
Alternative Carriers
Level 3 Communications 8,229.0 11 10 Y 64 5 73 4 75,000 b 265,292 40% 60% 0% 0%
Integrated Telecommunication Services
AT&T 146,801.0 12 11 N 61 5 72 8 95,000 b,c 310,279 48% 48% 0% 4%
CenturyLink 17,900.0 11 10 Y 62 11 75 10 65,000 b 297,031 45% 55% 0% 0%
Frontier Communications Corporation 5,576.0 11 10 Y 62 8 - 16 95,000 b,c 225,000 42% 58% 0% 0%
Verizon Communications 131,620.0 13 12 N 61 6 72 10 100,000 b 287,026 42% 57% 0% 1%
TOTAL TELECOMMUNICATION SERVICES
Average 11.6 10.6 61.7 7.0 73.0 9.6 86,000 276,786 44% 55% 0% 1%
Median 11.0 10.0 61.6 6.2 72.5 10.0 95,000 287,026
UTILITIES
Utilities
Ameren Corporation 6,098.0 11 10 N 63 6 72 7 85,000 b,c 210,133 52% 48% 0% 0%
American Electric Power Company 16,453.2 12 11 N 63 6 72 7 105,500 b,c 273,780 45% 55% 0% 0%
American Water Works Company 3,159.0 9 8 Y 64 7 75 13 75,000 b 195,520 46% 53% 0% 1%
CenterPoint Energy 7,386.0 9 7 Y 62 6 73 7 90,000 b 219,420 45% 55% 0% 0%
CMS Energy Corporation 6,456.0 12 10 Y 61 5 75 8 95,000 b,c 233,222 49% 51% 0% 0%
Consolidated Edison 12,554.0 10 8 N 66 10 75 10 100,000 b,c 257,437 50% 49% 0% 1%
Dominion Resources 11,683.0 10 9 N 63 8 72 10 205,000 c,d 277,165 46% 46% 0% 8%
DTE Energy Company 10,337.0 12 11 N 66 9 75 6 82,500 b,c 234,682 49% 51% 0% 0%
Duke Energy Corporation 23,459.0 12 11 N 64 6 71 14 215,000 c,d 310,491 59% 41% 0% 0%
Edison International 11,524.0 10 9 N 62 6 72 9 110,000 b 260,159 49% 48% 0% 3%
Entergy Corporation 11,513.3 11 10 N 64 7 74 14 95,000 b 244,233 45% 45% 0% 10%
Eversource Energy 7,954.8 12 11 N 68 8 75 7 100,000 b 208,655 51% 49% 0% 0%
Exelon Corporation 29,447.0 13 12 Y 63 6 75 8 80,000 b 276,417 60% 36% 0% 4%
FirstEnergy Corporation 15,026.0 14 13 Y 65 8 72 10 230,000 c,d 248,369 44% 53% 0% 3%
NextEra Energy 17,486.0 12 11 N 63 8 72 6 220,000 d 251,833 46% 54% 0% 0%
NiSource 4,651.8 9 8 Y 61 7 70 9 210,000 d 258,000 53% 47% 0% 0%
NRG Energy 14,674.0 13 11 Y 65 9 75 9 225,000 b,d,f 260,697 44% 56% 0% 0%
PG&E Corporation 16,833.0 12 11 N 65 8 72 12 120,000 b,c 257,460 53% 47% 0% 0%
Pinnacle West Capital Corporation 3,495.4 10 9 N 68 12 - 7 95,000 b,c 203,057 51% 49% 0% 0%
PPL Corporation 7,669.0 9 8 N 62 7 75 7 235,000 c,d,f 247,031 47% 52% 0% 1%
56
spencer stuart

number of
directors
independent
directors Board fees ($)
Percentage of
total compensation
AVERAGE
COMPENSATION PER
NON-EMPLOYEE
DIRECTOR
MEETINGS PER YEARª
COMPANY SALES
($ IN MILLIONS)
SEPARATE
CHAIRMAN/CEO
RETIREMENT AGE
AVERAGE TENURE
(years)
BOARD RETAINER
Board Retainer
Footnotes
INDEPENDENT
DIRECTORS
AVERAGE AGE
all other
OPTIONS
TOTAL
STOCK
CASH
Utilities (continued)
Public Service Enterprise Group 10,415.0 11 10 N 67 11 72 9 85,000 b,c 239,798 50% 50% 0% 0%
SCANA Corporation 4,380.0 11 10 N 60 10 70 9 193,000 c,d 199,378 42% 58% 0% 0%
Sempra Energy 10,231.0 11 10 N 67 9 75 7 85,000 b,c 246,113 49% 45% 0% 6%
Southern Company 17,489.0 15 14 N 65 6 72 9 110,000 b,c 242,657 47% 52% 0% 1%
WEC Energy Group 5,926.1 13 11 Y 66 9 72 9 75,000 b 198,474 41% 50% 0% 9%
Xcel Energy 11,024.5 11 10 N 62 10 72 6 90,000 b,c 240,229 20% 80% 0% 0%
TOTAL UTILITIES
Average 11.3 10.1 64.1 7.8 73.0 8.8 131,192 244,135 48% 50% 0% 2%
Median 11.0 10.0 64.1 7.7 72.0 9.0 100,000 245,173
TOTAL S&P500
Average 10.8 9.2 63.1 8.5 73.3 8.4 118,521 285,065 38% 54% 6% 2%
Median 11.0 9.0 63.0 8.2 72.0 7.5 100,000 269,642
Footnotes:
a Includes regular, special and telephonic board meetings.
b Equity (stock or stock units) is paid in addition to stated retainer.
c Directors can elect to receive cash compensation fully or partially in stock.
d Equity (stock or stock units) is paid as part of retainer.
e Stock option program for directors exists.
f Equity portion of retainer paid in deferred stock.
g Retainer paid 100% in stock.
h Directors can elect to receive equity retainer fully or partially in cash.
i Directors can elect to receive cash and/or stock compensation in stock options.
j Dollar value equivalent for retainer not provided in proxy.
k Directors can elect to receive stock in lieu of stock option grant.
board index 2016 57

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T 1.949.930.8000
Paris
T 33 (0) 1.53.57.81.23
Philadelphia
T 1.215.814.1600
Prague
T 420.221.411.341
Rome
T 39.06.802071
San Francisco
T 1.415.495.4141
Santiago
T 56.2.2.940.2700
Sao Paulo
T 55 11.2050.8000
Seattle
T 1.206.224.5660
Shanghai
T 86 21.2326.2828
Silicon Valley
T 1.650.356.5500
Singapore
T 65 6586.1186
Stamford
T 1.203.324.6333
Stockholm
T 46 8.5348015 0
Sydney
T 61.2.9240.0100
Tokyo
T 81 3.5223.9510
Toronto
T 1.416.361.0311
Vienna
T 43.1.36.88.700.0
Warsaw
T 48.22.321.02.00
Washington, D.C.
T 1.202.639.8111
Zurich
T 41.44.257.17.17